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HomeMy WebLinkAbout2009-01-13 City Council Agenda Item No. 9 CITY OF �. LADE 6 LSINOR ? � D REAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: JANUARY 13, 2009 SUBJECT: CONTRACT WITH ENVIROMINE, INC. TO PROVIDE CITYWIDE SURFACE MINING INSPECTIONS Background Lake Elsinore is an area of diverse uses, one of which is mining. Currently there are mining sites within the City of Lake Elsinore and they are regulated under the 1975 Surface Mining and Reclamation Act (SMARA). One of the requirements is an annual inspection which monitors the mining operations compliance with the conditions of approval and approved reclamation plan. Historically, the City contracted through Riverside County; however, that service is no longer available. Discussion In order to remain in compliance with the SMARA regulations, the City of Lake Elsinore is required to perform a mining inspection as a part of the annual report. The City has been notified that the County will no longer provide mining inspection services for the mines located within the City limits. In an effort to support the local mines and maintain compliance with the State Office of Mine Reclamation regulations, staff was referred the services of EnviroMine, Inc. This company will assign Warren Coalson as the City's inspector. Mr. Coalson, through education and experience provides over 30 -years of mining related experience and is familiar with the SMARA requirements. Fiscal Impact None, the cost of services will be passed through to the mining operators. Agenda Item No. 9 Page 1 of 6 Surface Mine Inspection Contract January 13, 2009 Page 2 Recommendations Approve a Service Contract with EnviroMINE Inc. in a standard form approved by the City Attorney for the performance of surface mine inspections in accordance with the state requirements and authorize the City Manager to execute such standard form contract. Prepared by: Ken Seumalo Director of Public Works Approved by: Robert A. Brady City Manager � P`' Attachment: Description of services Agenda Item No. 9 Page 2 of 6 o Inc. Environmental & Mine Permitting Services December 23, 2008 Mr. Tom Weiner, Community Development Director City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 Re: Annual SM.ARA- Compliance for Mining Operations in Lake Elsinore Dear Mr. Weiner: EnviroMINE, Inc. is pleased to present this cost proposal to provide mining compliance services for the City of Lake Elsinore. The proposed compliance services would be undertaken as part of a program to complete annual compliance requirements as outlined in the Surface Mining and Reclamation Act of 1975 (SMARA) and the City of Lake Elsinore Surface Mining Ordinance. Mining inspections must be completed within six months following the receipt of the annual report and financial assurances must be updated yearly to assure adequate surety is available to complete reclamation on the subject mining site. The following scope of the services is proposed to include the following tasks: 1. Perform inspections of SMARA regulated mining operations to assure compliance with the approved reclamation plan and conditions of approval. 2. Prepare inspection report(s) to verify compliance with the reclamation plan and conditions of approval. 3. Review Financial Assurance Estimates to determine adequacy. 4. Prepare performance review letters for each site for City information and action. I. Work Program The work program for this project is divided into four distinct functions: a) File Review, b) Mining Inspections, c) Financial Assurance Review, and d) Prepare Inspection Reports. These issues will be discussed in this order. 3511 Camino Del Rio South, Suite 403 - San Diego, CA 92108 (619) 284- 8515/(800) 755 -3995 - Fax: (619) 284 -0115 Agenda Item No. 9 Page 3 of 6 , Mr. Tom Weiner December 23, 2008 Page 2 a. File Review /Site Familiarity Prior to arriving at the mining sites to conduct inspections, it will be necessary to become familiar with the physical conditions of each site and complete a thorough review of all pertinent information relating to approvals for the project. This review provides the inspector with the necessary background to allow for a thorough inspection of the site. File review will include the approved reclamation plan, use permit, environmental documentation, and any other documents important to the site inspection. The City of Lake Elsinore is responsible for providing EnviroMINE with a copy of the operators' annual reports, approved Reclamation Plans, Use Permits, and financial assurances for the sites. b. Inspections It should be the goal of any inspection program to work as a problem solving tool. Not only are mine inspectors responsible for reviewing mining operations for compliance, the inspector must also serve as an ambassador of the lead agency. At times there are disagreements with the requirements of the approval conditions and mitigation measures. The inspector will be charged with interpreting and fmding solutions to these problems. For this reason, it is important to develop a cordial working relationship with the mine operator. In most cases, solutions should be arrived at in the field with the mine operator. This approach will result in fewer complaints for the lead agency and assure implementation of all compliance conditions. EnviroMINE will perform the inspections for operations within the City of Lake Elsinore. This will include contacting the mine operators to set up date and time and inspecting the site for compliance with the Use Permit, CEQA mitigation measures, and Reclamation Plan. In some instances, it may be necessary to return to the site to follow -up on deficiencies noted in the site inspection. Where deficiencies are noted, the mine inspector may be required to specifically identify violations and note these on inspection reports. Should this occur, SMARA allows mine operators 30 days to correct deficiencies before being re- inspected. If additional inspections are required, an additional cost proposal will need to be approved. EnviroMINE understands the benefits to developing cooperative working relationships between the mine operator and the Lead Agency. As such, we will attempt to allow the operator to correct any deficiencies in the field on the day of the inspection. If satisfactory resolution cannot be reached in the field, we will consult with City staff to gain direction for further action. Our goal is to find solutions to problems. Agenda Item No. 9 Page 4 of 6 Mr. Torn Weiner December 23, 2008 Page 3 c. Financial Assurance Review Annual review of financial assurances is required by SMARA to insure that adequate surety is available should the operator default on the reclamation requirements. Review and adjustment of financial assurances can be somewhat time consuming. This depends, in large part, on the operator's willingness to provide adequately detailed and justified estimates. EnviroMINE is uniquely qualified to review financial assurances. EnviroMINE authored the estimating procedure utilized by the State Mining and Geology Board as adopted in their Financial Assurance Guidelines. d. Inspection Reports Site Inspection Reports shall be completed on the forms provided for this purpose by the State Department of Mines and Geology. Other items to be included with the report would include a listing of problem areas and issues of potential variance from the conditions of the use permit for the mining operation. Where problem areas are identified (e.g. accelerated erosion), suggested steps for correcting the problem will be listed. This information may then be used by the operator and the City to assist with implementing corrective measures. The City of Lake Elsinore is recognized as the lead agency with ultimate authority for direction and content of information included in the inspection reports. Inspection reports will be completed within 30 days following individual mine site inspections. Each inspection report will be prepared in duplicate and submitted to the City for review and approval. II. Budget Total labor and materials charges to complete the annual mine compliance requirements will not exceed $5,000.00 per site. These charges will include review of the Use Permit and Reclamation Plan, completion of the • site inspection, review of financial assurances, and preparation of the inspection report. Copies will be provided for transmittal to the Department of Conservation, and operator. Should additional work requirements result from the outcome of the compliance audit, additional charges may be warranted. Should additional work be required, labor and expenses will be billed at the following rates: Agenda Item No. 9 Page 5 of 6 Mr. Tom Weiner December 23. 2008 Page 4 Staff Hourly Rate Warren R Coalson $175.00 Principal Planner $155.00 Project Manager $135.00 Project Planner $115.00 • GIS Technician $85.00 Research Analyst . $75.00 Administrative $65.00 Expenses Cost + 15% Mileage $0.42 /Mile III. Schedule EnviroMINE will complete the inspections within 30 days following notice to proceed by the City of Lake Elsinore. Inspection reports will be completed within 30 days following the completion of site inspections. IV. Miscellaneous Proposal Requirements a. Conflict of Interest Neither EnviroMINE, nor any of the members of the project team, has been hired by • City of Lake Elsinore operators to assist with professional services directly related to any component of the proposed project or related projects under study in this proposal. No member of EnviroMINE's team has a financial gain or an interest in the final outcome of the project. b. Insurance EnviroMINE holds Workers Compensation and General Liability Insurance with $1.000,000 coverage per occurrence. c. News Releases EnviroMINE agrees to refrain from releasing news announcements or participating in news interviews on issues relating to the conduct of the scope of services unless expressly authorized by the City of Lake Elsinore. d. Company Type and Tax Identification EnviroMINE, Inc. is a California 8-Corporation. with offices located at: 3511 Camino Del Rio South, Suite 403 San Diego, Ca 92108 Warren R. Coalson, CEO Federal Tax Identification No. 10- 0007670 Agenda Item No. 9 Page 6of6