00-240 Resolution No. 00-240
RESOLUTION
ADOPTING THE 2000 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 2000 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: November 1 , 2000
Adopted: November 1, 2000
Omnibus Vote : Yeas 7 Nays 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
�I
7
PRAIRIE MATERIAL SALES, INC.
ANNUAL NEWING REPORT-2000
Pursuant to the Addendum to Agreement for Gravel Extraction and Rehabilitation dated December 13, .
1994 between the City of Elgin("City") &id 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 2000, as contemplated by paragraph 8 of the
Mining Agreement. Reference is made to the attached site plan("Site Plan") for.purposes of clarification.
1.. In 1999, by prior agreement with the City, Operator did dispose of overburden taken from cells
6, 7 & 8 into cells 9, 8 & 7 up to approximately the imaginary line connecting Point C and Point
D (the C-D Line"). Operator estimates that the depth of Cell 6 at the C-D Line will be
approximately 50-60 feet, and that as one moves East, the depth gradually decreases until, at
imaginary A-B Line, the depth is between 10 feet and 15 feet.
2. Operator is currently conducting mining operations in cells 6,2 and Iin 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 1, 2 and 3 and anticipates reaching the imaginary E-F Line by
December 3l, 2000.
3. Subject to paragraph 4 below, as muting progresses (as described in paragraph 2 above),
• Operator will continue to dispose of overburden back into cells 8, 7 and 6 with the
understanding that as overburden is deposited west of the C-D Line, Operator shall cause the
depth of the resulting lake are to at all times be not less than 30 feet.
4. f Operator encounters Unforeseen Circumstances (as hereafter defined) which make
O for's ability to dispose of overburden into the cells while maintaining the de described
in para h 3 above,then:
(a) Operator 1 notify the City of the development of unfor en circumstances within 10
days following e discover;of same (such notice be' hereafter called the"Unforeseen
Consequences Noh ,
(b) The City and the Operator sh rom (but in no event later than 10 business after
Operator's notice to the City)m discuss and attempt, in good faith, to agree upon
an agreeable overburden di sal plan 'ch (i) results in compliance with the standards
of paragraph 3 above (ii) does not incre Operator's operating costs and which
results in the cre 'on of a lake.with a depth acce ble to the City.
(c) If,wi ' 15 business days following the date of the Opera 's Unforeseen
equences Notice (the "Fifteen Day Period") the City an d perator have not
reached written agreement as to the disposal of overburden to be the er removed as
contemplated in paragraph 4(b) above, then:
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0) The City shall have the right to specify to the Operator on or before 5:00 on
the 2"d business day following the close of the Fifteen Day Period(s
additional period being hereinafter called the"Two Day Period" at the
overburden shall be disposed of in either of the following tw ocations:
Loc on 1: Into cells 9, 8, 7 and 6 of the propos ake without regard to (and
without responsibility for) the re ting depth of the lake
(notwithstanding the provisi of paragraph 3 above); or
Location 2: Onto surface of e site adjacent to the lake, but not at a
distance fr current area of mining as to materially increase
Operator's e den disposal costs above the costs which
would e been ' ed had Location 1 been selected.
(ii) If the City-do not specify either of the two ove-referenced locations on or
before th nd of the Two Day Period, then it sh be conclusively presumed
that City has selected Location 1.
As used her , the term "Unforeseen Circumstances"shall mean the occurre a of the situation
in whic ether(i) the depth of the good-quality limestone from the surface of the ound
exc s seventy (70) feet or(ii) the thickness of the strata of good quality limestone eases to
• ss than fifty(50)feet.
5. During calendar year 2000, the Operator hopes to sell in excess of 1,000,000 tons of aggregate at
an average sales price of$6.75 per ton. If these projections prove true,the royalties to be paid
by the Operator to the City could amount to in excess of$700,000 for calendar year 2000.
6. Additionally, during calendar year 2000, 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 again advise the City that it is the City's responsibility to bring about 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 by reason of the fact that the City has not had (and,to the Operator's knowledge, still does
not have) a mass grading plan associated with the City's intended golf course on the Elgin Sports Complex
�operty. The relocation or disbursement of the soil within this stockpile is not the responsibility of the
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• Operator under the Mining Agreement(since the Mining Agreement contemplates that overburden will be
moved by the Operator only once).-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. (The Operator has, under
separate cover, submitted to the City a proposal to expand the mining area to the south, and believes that such
an expansion could provide for the City the least-cost alternative to disposing of the aforementioned stockpile.)
Respectfully submitted,
PRAIRIE MATERIALS SALES, INC.
By:
Jerry Fiordirosa, General Manager.
•
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City Of Elgin Agenda Item No.
October 19, 2000
TO: Mayor and Members of the City Council
PEG PfiAT10 NAL 1_E IS LIFE
FROM: Joyce A. Parker, City Manager ANf�CULTURAL 0PP0PTUNI'FI[5
. FOR ALL CITIZENS
SUBJECT: Prairie Materials Sports Complex
2000 Annual Mining Plan
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with. information to consider the approval of
Prairie Materials 2000 Annual Mining Plan at the Sports Complex.
BACKGROUND
In accordance with the agreement between the City and Prairie
• Materials, a plan for the Sports Complex mining operation must be
approved annually by the City Council via approval from the Sports
Complex Golf Course Project Leadership Team.
In 1999, consistent with the approved plan, Prairie Materials
disposed of overburden taken from cells 8, 7, and 6 into cells 9,
8, 7, and 6 up to imaginary line connecting points C and D.
Operator estimates that the depth of cell 6 at the C-D line will be
approximately 50-60 feet, and that as one moves east, the depth
gradually decreases until, at imaginary A-B Line, the depth is
between 10 feet and 15 feet .
The Sports Complex Golf Course Project Leadership Team approved the
Prairie Materials proposed 2000 mining plan (attached) during their
May 24 meeting for submittal to the City Council for final
approval .
• Prairie Materials is currently conducting mining operations
along the southern portion of cell 6 and the eastern portions
of cells 1 and 2 in the area labeled "current mining" on the
attached map. When mining in the "current mining" area is
completed, Prairie Materials shall begin mining in a westerly
and northerly direction through cells 1, 2, 3, 4, and 6 to the
imaginary line E-F.
2000 Annual Mining Plan
October 19, 2000
Page 2
• Prairie Materials shall 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, Prairie
Materials shall cause the depth of the resulting lake to
gradually increase to not less than 30 feet and in accordance
with the. golf course grading plan.
• During calendar year 2000, Prairie Materials anticipates
selling in excess of 1, 000, 000 tons of aggregate at an average
sales price of $6. 75 per ton.
• Prairie Materials shall continue to complete the construction
of the temporary reservoir located to the southwest of cell 1
of the mining area . The reservoir is used as a settling pond
for water following the washing of stone.
• Prairie Materials shall use its good faith best efforts to
maintain a ten-foot safety ledge around the inside perimeter
of the future lake. Prairie Materials shall provide the City
• written notice within ten calendar days if they are unable to
provide such a safety ledge along any portion of the future
lake.
Items not approved as proposed by Prairie Materials were the
entirety of paragraph 4 regarding a dispute resolution process and
the final paragraph at the bottom of page 2 and continuing to the
end of page 3 of the plan regarding the elimination of the
overburden stockpile. These issues continue to be discussed with
Prairie Materials and will be brought back to the Project
Leadership Team and the City Council at a later date.
There has been a delay in bringing this plan to the City Council
this year due to several issues that are currently being discussed
within the mining contract with Prairie Materials as well as' the
golf course development project implementation issues being
determined concurrently with the mining. As part of the golf
course development at the Sports Complex, Patrick Engineering is
developing a reclamation plan for Prairie Materials to move
overburden and shape the lake edge . This plan will be issued to
Prairie Materials by the end of this year to be utilized in
developing their 2001 annual plan.
• 2000 Annual Mining Plan
October 19, 2000
Page 3
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Sports Complex Golf Course Project Leadership Team and Prairie
Materials .
FINANCIAL IMPACT
Prairie Materials has estimated that approximately $700, 000 in
mining royalties will be received by the City Council in 2000 . A
otal of $600, 000 was received in 1999 from mining royalties .
LEGAL IMPACT
None.
ALTERNATIVES
None.
RECObMNDATION
It is recommended that the Mayor and members of the City Council
approve the Prairie Materials 2000 annual Sports Complex Mining
Plan, with exception of the entirety of paragraph 4 regarding a
dispute resolution process, and the last two paragraphs of the plan
at the bottom of page 2 and continuing to the end of page 3
regarding the elimination of the overburden stockpile .
Re ectfully submitted,
Jo ce A. Parker
City Manager
mm/MM