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Home My WebLink AboutResolution 2024-059City of Atascadero Resolution No. 2024-059 Page 1 of 4 RESOLUTION NO. 2024-059 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DETERMINING THAT THE MILLHOLLIN MINE IS FULLY REMEDIATED TO THE SATISFACTION OF THE CITY AND AUTHORIZING STAFF TO TAKE ALL NECESSARY STEPS TO FORMALLY CLOSE THE MINE. CPP2019-0125 MILLHOLLIN MINE CLOSURE WHEREAS, the Millhollin Mine (also referred to as a Quarry or CA Mine ID#91-40- 0001) is located in the vicinity of 11600 Santa Lucia Road; and WHEREAS, in March 1980, a Reclamation Plan was approved for the Millhollin Mine by the County of San Luis Obispo; and WHEREAS, on October 23, 1996, the City Council approved a Conditional Use Permit (CUP 96003) which consists of a Final Reclamation and Closure Plan (“1996 Plan”), Operations Agreement, and Environmental Assessment; and WHEREAS, the effective date of the Operations Agreement was October 23, 1996; and WHEREAS, the right to mine the Millhollin Mine expired on October 23, 2011, pursuant to the terms of CUP 96003; and WHEREAS, the obligation of the owner of the Millhollin Mine to complete the 1996 Plan continues until reclamation under said Plan has been satisfactorily completed; and WHEREAS, on March 17, 2020, a building permit (OTCC20-0249) was approved for final reclamation-related grading activities. The building permit was conditioned, consistent with the 1996 Plan to plant 50 native trees and to hydroseed the reclamation area with native and drought tolerant species consistent with the reclamation activities identified in the Financial Assurance Cost Estimate (FACE); and WHEREAS, at the time of the 2019 Surface Mining Inspection, the approved financial assurance, in the amount of $11,888.00 was inadequate to perform the reclamation required in CUP 96003 and as provided by PRC Section 2777.5 (a)(3); and WHEREAS, on March 3, 2020, the mine operator submitted a certificate of deposit in the amount of $6,000.00 to increase the total financial assurance mechanism for the reclamation of the mine to $17,888.00; and City of Atascadero Resolution No. 2024-059 Page 2 of 4 WHEREAS, the current face value of the financial assurance, $17,888.00 remains inadequate to perform the reclamation required in CUP 96003 and as provided by PRC Section 2777.5(a)(3); and WHEREAS, on November 20, 2020, the mine operator, Glenn Millhollin passed away; and WHEREAS, between December 2020 and March 2021, Mr. Millhollin’s family, acting as the mine operator’s representative, made a good-faith effort to continue reclamation activities, which included grading and curve rounding the excavation slopes to stabilize and blend with adjacent natural slopes, planting approximately 50 native trees along the ridgelines with irrigation; and WHEREAS, a majority of the reclamation activities have been completed to date with the exception of hydroseeding regraded slopes; and WHEREAS, the slopes have naturalized significantly over the 13 years that the mining operation has ceased and hydroseeding is no longer necessary; and WHEREAS, the mining operator is incapable of providing sufficient evidence of financial capability such that in light of all the evidence, it appears more likely than not that the operator cannot fully complete reclamation in accordance with the operator’s approved reclamation plan, and there is sufficient evidence that the operator has physically abandoned the mining operation; and WHEREAS, a timely and properly noticed Public Hearing, per California Code of Regulations, Title 14, Division 2, Chapter 8, Article 11.5, Section 3813 Hearing Procedure Notice upon the subject closure process for the Millhollin Mine was held by the City Council of the City of Atascadero at which hearing evidence, oral and documentary, was admitted; and, WHEREAS, the City Council of the City of Atascadero, at a Public Hearing held on September 10, 2024, studied and considered pertinent information related to the mine and closure process (CPP19-0125). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ATASCADERO: SECTION 1. Recitals. The above recitals are true and correct. SECTION 2. Public Hearing. The City Council held a duly noticed public hearing on September 10, 2024, and considered testimony and reports from staff, the operator’s representative, public agencies, and other interested persons. City of Atascadero Resolution No. 2024-059 Page 3 of 4 SECTION 3. Findings. 1. FINDING: The mine has been remediated to the satisfaction of the City and the intent of the reclamation plan has been achieved through the good faith efforts of the family and the naturalization of the site. FACT: The mine operator passed away prior to completion of full reclamation actions outlined in the approved 1996 plan. However, the family, acting in good faith, continued efforts to the greatest extent of their ability and completed grading and tree replanting efforts. The remain task of hydroseeding was not completed, however, the site has remained non-operational for 13 years and, in that time, the site has naturalized with native grasses in the areas where hydroseeding would have been applied. 2. FINDING: The operator is incapable of providing or fails to provide sufficient evidence of financial capability such that in light of all the evidence, it appears more likely than not that the operator cannot fully complete reclamation in accordance with the operator’s approved reclamation plan. FACT: The operator is deceased and the funds held by the city are insufficient to cover the cost of full reclamation per the approved 1996 plan. SECTION 4. Determination. The Atascadero City Council, in a regular session assembled on September 10, 2024, determined that the Millhollin Mine is considered remediated to the satisfaction of the City, and the operator is financially incapable of performing full reclamation consistent with the 1996 plan. EXHIBIT A: Reclamation and Closure Plan, Operations Agreement, and Environmental Assessment SECTION 5. Authorization. The City Council of the City of Atascadero authorizes the Community Development Director and the Administrative Services Director to take appropriate action(s) to achieve full closure of the Millhollin Mine. City of Atascadero Resolution No. 2024-059 Page 4 of 4 PASSED and ADOPTED at a regular meeting of the City Council held on the 10th day of September 2024. On motion by Council Member Funk and seconded by Council Member Bourbeau, the foregoing Resolution is hereby adopted in its entirety by the following roll call vote: AYES: Council Members Bourbeau, Dariz, Funk, and Mayor Moreno NOES: None ABSENT: Council Member Newsom ABSTAIN: None CITY OF ATASCADERO: ______________________ Heather Moreno, Mayor ATTEST: ______________________________ Lara K. 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