APPLICATIONS FOR POST-ACKNOWLEDGEMENT ZONE MAP AMENDMENT, COMPREHENSIVE. PLAN TEXT AMENDMENT and SITE REVIEW FOR TRAVERSO AGGREGATE MINING SITE

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1 APPLICATIONS FOR POST-ACKNOWLEDGEMENT ZONE MAP AMENDMENT, COMPREHENSIVE PLAN TET AMENDMENT and SITE REVIEW FOR TRAVERSO AGGREGATE MINING SITE CANBY AREA CLACKAMAS COUNTY, OREGON APPLICANT: PARKER-NORTHWEST PAVING CO., INC S. HIGHWAY 99E CANBY, OREGON NARRATIVE PREPARED BY: KUPER CONSULTING LLC 3575 RUNNING DEER DR. HELENA, MONTANA PERKINS COIE 1117 NW COUCH ST., TENTH FLOOR PORTLAND, OREGON September 30, 2017 i

2 A TRIBUTE TO ROBERT TRAVERSO For many years, Robert Traverso and family mined the various properties under the Parker- Northwest Paving Co., Inc. ownership in the Canby area. Mr. Traverso was well respected in the community, having given time and energy to the community in many ways. As a mining operator, he was very proud of both the working operations as well as the reclamation of the lands he mined. He has left a legacy of lakes, ponds, wetlands and wildlife habitat along the Molalla River. Mr. Traverso looked forward to mining the Traverso Aggregate site. He prepared a large part of this application and designed a reclamation plan for the site that provided extensive voluntary reclamation beyond what DOGAMI requires. He has won numerous awards from DOGAMI in honor of his mine operations as well as his reclamation practices. As a tribute to his life, his wife Nancy and family are continuing forward to permit this site for future mining. ii

3 September 30, 2017 Project No D Mr. Rick McIntire Senior Planner Clackamas County Planning and Zoning Division 150 Beavercreek Rd. Oregon City, OR Re: Proposed Traverso Aggregate Mine Site Goal 5 Land Use Application Dear Mr. McIntire, Kuper Consulting LLC (KC) is pleased to submit this Post-Acknowledgment Plan Amendment Application (PAPA) requesting a comprehensive plan text and a zone map amendment to add an "Mineral Aggregate Overlay" to an existing "Exclusive Farm Use" zone; inclusion of the subject site on the County's adopted Inventory of Mineral and Aggregate Resource Sites pursuant to Statewide Planning Goal 5 and Site Review authorization with regard to the proposed Traverso Aggregate mining ("Site") located in Clackamas County, Oregon. The attached application submittal addresses and demonstrates compliance with applicable review criteria in accordance with applicable Statewide Planning Goal provisions, and particularly Oregon Statewide Planning Goal 5 and implementing administration regulations (OAR Chapter 660 Division 23). We appreciate the opportunity to work with County representatives on this land use review. Sincerely, KUPER CONSULTING LLC Dorian E. Kuper, CEG President, Certified Engineering Geologist cc: Mr. Steven Pfeiffer, Perkins Coie (with enc.) Client (with enc.) iii

4 APPLICATIONS FOR POST-ACKNOWLEDGMENT ZONE MAP AMENDMENT, COMPREHENSIVE PLAN TET AMENDMENT, AND SITE REVIEW FOR TRAVERSO AGGREGATE MINE SITE Applicant: Property Owner: Applicant's Representatives: Mrs. Nancy Traverso Parker-Northwest Paving Co., Inc S. Highway 99E Canby, Oregon Same as above Dorian Kuper Kuper Consulting LLC Mr. Steven Pfeiffer Perkins Coie Address: Immediately East of the Intersection of S. Highway 99E and Barlow Road Legal Description: 41E05C E05D Mine Life: Reclaimed Use: years, market dependent Reclamation will be concurrent with aggregate mining. A water feature will be created as mining progresses across the site. The Reclamation Plan will be approved by DOGAMI in accordance with applicable standards and requirements regulated by the department. Pre-Application Conference: August 8, 2017 iv

5 TABLE OF CONTENTS Page TITLE PAGE... i A TRIBUTE TO ROBERT TRAVERSO... ii LETTER OF TRANSMITTAL... iii APPLICATION INFORMATION... iv EECUTIVE SUMMARY... ix I. INTRODUCTION... 1 A. Applicable Approval Criteria:... 1 B. Technical Studies Completed... 2 II. PROPERTY SUMMARY... 2 A. Description of Site Background of Mining in the Area Economic Development Analysis, prepared by Robert Traverso Description of Surrounding Area... 7 a. Properties to the Northeast and Adjacent to S. Highway 99E... 7 b. Properties North of S. Highway 99E and Union Pacific Railroad... 7 c. Properties West of the Subject Site... 8 d. Properties South of Subject Site... 8 e. Barlow House Property... 8 B. Application Approval Criteria Overview Mine Plan Reclamation Public Benefits III. OREGON STATEWIDE PLANNING GOAL A. Is the Mineral and Aggregate Resource Significant? (OAR (3)(a)) Quality of the Resource Quantity of the Resource Location of the Resource v

6 TABLE OF CONTENTS (continued) Page 4. OAR (3)(d): Soils & Width (sic) of Aggregate Layers Criteria Summary B. If the Site Is Significant, What Is the Extent of the Resource's Impact Area? (OAR (5)(a)) Existing and Approved Uses Within the Impact Area C. What Conflicts, if Any, Could Be Generated Between the Resource and Existing or Approved Land Uses in the Impact Area? (OAR (5)(b)) Conflict and Identification Assessment D. If Conflicts Are Identified, Are There Any Reasonable and Practicable Measures that Would Minimize the Conflicts? (OAR (5)(c)) Conflicts Due to Noise, Dust, or Other Discharges a. Noise b. Dust c. Wetlands d. Groundwater e. Other Discharges (i) Diesel Engine Emissions (ii) Stormwater Potential Conflicts to Local Roads Safety Conflicts with Existing Public Airports (OAR (5)(b)(C) Conflicts with Significant Acknowledged Goal 5 Resource Sites (OAR (5)(b)(D) a. Molalla River Corridor b. Mineral and Aggregate Resources, OAR c. Historic Resources: OAR Conflicts with Agricultural Practices (OAR (5)(b)(E)) Conflicts with Ordinances That Supersede DOGAMI Regulations Summary of Predicted Conflicts vi

7 TABLE OF CONTENTS (continued) Page 8. Conflict Minimization Plan a. Minimization of Noise Conflicts b. Minimization of Traffic Conflicts c. Minimization of Goal 5 Resource Conflicts d. Concluding Statement e. If Any Identified Conflicts Cannot Be Minimized, Does an Analysis of the Economic, Social, Environmental, and Energy ("ESEE") Consequences of the Resource Support Approving the Mining Use? (OAR (5)(d)) f. If Mining Is Approved, What Is the Post-Mining Use of the Site? (OAR (5)(f)) (i) Conceptual Reclamation Plan g. If Mining Is Approved, Does an ESEE Support the County Allowing, Limiting, or Preventing Conflicting Uses Within the Impact Area? (OAR (7)) Program to Achieve Goal Oregon Statewide Planning Goals IV. CLACKAMAS COUNTY ZONING AND DEVELOPMENT ORDINANCE A. Section 708 Mineral and Aggregate Overlay District (MAO) B. Section 1006 Water Supply, Sanitary Sewer, Surface Water-Septic and Utilities Concurrency C Public Sanitary Sewer Systems D. Section 1010 Signs V. LIMITATIONS VI. PROPOSED CONDITIONS OF APPROVAL VII. REFERENCES Tables (Located at end of narrative): Table 1 Location of Information Table 2 Potential Conflicts with Existing Uses within the Impact Area Table 3 Potential Conflicts with Future Uses Permitted Outright or Conditionally vii

8 Figures (Located at end of Tables): Figure 1 Vicinity Map Figure 2 Tax Lot Map and Impact Area Figure 3 Existing Conditions Figure 4 Permitted Mine Sites Figure 5 Mining and Operation Plan Figure 6 Mine Cells Figure 7 General Mine Operation Layout Figure 8 Reclamation Plan Overview Figure 9 Slope and Shoreline, Cross Section Figure 10 S. Barlow Rd. Buffer Setback, Barlow House, S. Highway 99E Buffer Setback Figure 11 Hanes Buffer Setback, South Property Line Setback Figure 12 Post Mining Reclamation Map Figure 13 Conceptual Reclamation Plan Figure 14 Reclamation Plan in Water Figure 15 In Water Containment Barrier, Cross Section Figure 16 Site Plan Appendices: Appendix A Aggregate Resource Evaluation & Significance Determination, Traverso Aggregate Property, Clackamas County, Oregon (Kuper Consulting LLC) Appendix B Hydrogeologic Analysis, Traverso Expansion Property, Clackamas County, Oregon (H.G. Schlicker & Associates, Inc.) Appendix C Stormwater Analysis for Traverso Aggregate Site, LLC (Westlake Consultants Inc.) Appendix D - Traverso Aggregate Site, Goal 5 Noise Study (Acoustics by Design) Appendix E Traverso Aggregate Traffic Impact Analysis, Clackamas County, Oregon (Sandow Engineering, LLC) Appendix F Determination Report for Tax Lot 1100, S. Highway 99E (Schott & Associates) AND Soil Investigation for Canby Sand & Gravel, Aggregate Extraction Property, 41E,05C, Tax Lot 1100 and 41E, 05D, Tax Lot (Red Hill Soils) Appendix G Existing Uses within the 1,500 foot Impact Area Appendix H Aggregate versus Farmland (Robert Traverso) Appendix I DOGAMI Reclamation Plan Set (Kuper Consulting LLC) Appendix J Clackamas County Application Form Appendix K Title Information, Miscellaneous Permits for Applicant viii

9 EECUTIVE SUMMARY The purpose of these applications is to expand the Wilmes Sand & Gravel site in order to provide a replacement supply of aggregate for the adjacent Canby Sand & Gravel ("CS and G") extraction and processing operation site, which has exhausted its onsite supply of aggregate. The site, which will be known as Traverso Aggregate, will assure a local source for high quality aggregate in Clackamas County for the next ten to twenty years, depending on market conditions, to the benefit of the local community through economic and fiscal contributions including enhancement of the affordability of aggregate products for local public and private construction and infrastructure projects. The facility is anticipated to support 35 full time equivalent jobs at full operation, and the employment opportunities afforded by the operation will, consistent with current industry market characteristics, enhance local source hiring opportunities. Parker-Northwest Paving Co., Inc. (the "Applicant") seeks land use approvals for the Traverso Aggregate Site ("Site") to allow the expansion of the existing and adjacent CS and G aggregate mining site (Wilmes) and to allow processing at the existing site or at the adjacent newly permitted Site. Upon approval, the Site will provide a replacement supply of rock for processing. The Applicant submits these concurrent Applications ("Applications") requesting that Clackamas County ("County"): (1) amend the Clackamas County Comprehensive Plan ("CCCP") Goal 5 "Inventory of Mineral and Aggregate Resource Sites" to identify approximately 117 acres of the Site identified as Tax lot 1100 Map 41E05C and Tax lot 1100 Map 41E05D, currently zoned Exclusive Farm Use (EFU 20) in Township 4 South, Range 1 East, Section 5, as a significant mineral and aggregate resource site; and (2) amend the Clackamas County zone map to apply a Mineral and Aggregate Overlay district (MAO) designation to the Site (3) approve Site Plan Review for the project. The proposed action, as described, includes application of the MAO overlay designation to the 8 +- acre site Wilmes Sand & Gravel Site ("Wilmes"), which currently is subject to Conditional Use Permit No C and an Oregon Department of Geology and Mineral Industries (DOGAMI) Permit No As proposed, processing (crushing, stockpiling and associated activities) may occur on the Site and/or the excavated material will be transported to the adjacent property owned and operated by Parker-Northwest Paving Co., Inc. called "Canby Sand & Gravel" (an existing non-conforming use County Z NCU and DOGAMI Permit No ) for processing. Both options are discussed in the text of this application. Under both scenarios, the materials will be transported from the site across the Wilmes site to the Canby Sand & Gravel site and then transported off site via S. Highway 99E. The Goal 5 administrative rule (Oregon Administrative Rule ("OAR") chapter 660, division 23) establishes the exclusive criteria by which the County must determine if the Site is a significant aggregate resource, whether all identified conflicts are minimized and mining should be allowed at the Site, and whether future conflicting uses should be allowed, limited, or prohibited, as is needed to protect the identified significant aggregate resource. OAR chapter 660, division 23 was adopted in 1996, amended in 2004, and replaced OAR Chapter 660, Division 16 for purposes of processing PAPAs concerning aggregate resources. OAR (l). Over time, local governments must amend their comprehensive plans and land use regulations to ix

10 include procedures and requirements consistent with OAR 660, Division 23 and specifically OAR for the consideration of PAPAs concerning aggregate resources. Until such incorporation into local plans and implementing ordinances is accomplished, the requirements of the OAR shall be directly applied to the proposed PAPA. See OAR (9); Morse Bros, Inc.. v. Columbia County, 37 Or LUBA 85 (1999), aff'd 165 Or App 512 (2000); Eugene Sand & Gravel, Inc. v. Lane County, 44 Or LUBA 50, 96 (2003), aff'd. 189 Or App 21 (2003). Consistent with OAR (8)(a)-(e), these Applications include the technical information required to demonstrate compliance with the criteria under Goal 5 including the following: (1) Information regarding the significance of the Site location, quality, and quantity sufficient to meet the standards and conditions set forth in OAR (3). (2) A conceptual site reclamation plan. (3) A traffic impact assessment pursuant to OAR (5)(b)(B). (4) The identification of predicted conflicts with existing or approved uses within the impact area, and, as necessary, any measures required to minimize such conflicts. (5) Site plan describing the mining operation. (6) A proposed program to achieve Goal 5 consistent with OAR With regard to significance, the evidence presented in this Application demonstrates that the Site should be deemed a Significant Aggregate Resource and be included in the County's acknowledge of Goal 5 inventory under the Goal 5 criteria. The Site was evaluated as to the location of the aggregate resource, the aggregate was tested and exceeds Goal 5 quality requirements, and the Site contains over 6.5 million tons of aggregate resource, which far exceeds the criterion in OAR (3)(a) requiring 2 million tons for a site. The Traverso Aggregate site is a significant aggregate resource based on these criteria. See Appendix A. Further, the Applicant has demonstrated that potential conflicts to existing and approved uses from the proposed aggregate site can be minimized to a level no longer significant through reasonable and practicable measures. Finally, the analysis under OAR demonstrates that while some protection from future conflicting uses may be warranted, no future uses within the impact area need to be prohibited or otherwise restricted. Therefore, the County can determine that the Goal 5 criteria are satisfied. Attachments to this narrative include the Applicant's proposed conditions of approval presenting conflict minimization, together with numerous technical studies and reports prepared by qualified consultants addressing the full range of applicable review criteria. Based upon the substantial evidence included with this submittal, the Applicant requests that the County find that the applicable criteria are met and approval should be confirmed, subject to the final conditions of approval. x

11 TRAVERSO AGGREGATE SITE I. INTRODUCTION Parker-Northwest Paving Company, Inc. (applicant) hereby submits three (3) Land Use applications to Clackamas County requesting the following: (a) (b) (c) Amend the County's Comprehensive Plan Text and Map and the Site to include (designate) a Significant Mineral and Aggregate Resource Site, Add a Mineral and Aggregate Overlay (MAO) zone designation to the Site and Approve a Site Plan Review for the Site. The following narrative describes how the referenced applications satisfy the provisions and standard requirements of Oregon Administrative Rules, OAR and Oregon's Statewide Planning Goals. In addition, the applicant provides information pertinent to onsite mining operations and proposed reclamation of the property. Included in the consolidated applications are several studies and reports prepared by consulting experts addressing applicable criteria under OAR The studies include analyses addressing, but not limited to, resource significance and potential impacts related to noise, dust, stormwater, groundwater, wetlands and traffic. The studies focus on site conditions, potential impacts, proposed mitigation measures, and regulatory compliance. In our professional opinion, this application(s) provides the information demonstration that the Traverso Aggregate Site: Meets the applicable criteria of OAR ; and Is a significant Goal 5 aggregate resource site. A. Applicable Approval Criteria: This section identifies the various approval criteria and provides detailed evidence within this text to demonstrate how the Applications satisfy each applicable criterion. Where appropriate to ensure on going compliance with applicable criteria, this section also includes Applicant's proposed conditions of approval. The following criteria are addressed: Statewide Planning Goal 5 Implementing Rule OAR Statewide Planning Goals Site Plan Review, Clackamas County Zoning and Development Ordinance (CCZDO) Section 708, 1006 and

12 B. Technical Studies Completed Extensive technical analysis were performed on the Site addressing resource significance and any potential for significant conflicts within the Impact Area resulting from the proposed project (as defined by OAR (5)(a)). Studies which document such analysis include the following: Geological, ground water and stormwater analysis; Wetland delineation; Analysis of potential conflicts with Goal 5 resources; Analysis of noise, dust and other discharges; and Transportation impact analysis addressing applicable Statewide Planning Goal requirements. These studies provide substantial evidence and analysis by qualified consultants in support of a determination of compliance with applicable criteria. II. PROPERTY SUMMARY A. Description of Site The subject site is located approximately one (1) mile southwest of the City of Canby on S. Highway 99E, See Figure 1, Vicinity Map. The property is zoned Exclusive Farm Use (EFU 20 acres) and lies between S. Tull Avenue and S. Barlow Road and extends south of Highway 99E, east to the Molalla River. The property is approximately one hundred seventeen (117) acres in size and is a gradual sloping site with elevations ranging from 105 feet mean sea level (MSL) in the western portion to 115 feet (MSL) in the eastern portion of the property. The proposed extraction site lies above the one hundred (100) year flood elevation and is classified as an "Upland Property." Vegetation on the property consists of sequoia trees along S. Barlow Road and adjacent to S. Tull Avenue. There are no regulated wetland areas identified on the Site. 1. Background of Mining in the Area Surface mining first occurred on the adjacent Canby Sand & Gravel property in The owners and operators of the business known as Canby Sand and Gravel were Leslie Gibson and C.A. Bauman. They operated the mining site and gravel business until 1950 when they merged Canby Sand & Gravel with Molalla Readymix, Inc. and formed Hiway Products, Inc. In 1953, Alfred J. Millar purchased the business and property and formed "Hiway Concrete Products". Mr. Millar operated the site and business until February 9, At that time, Mr. Millar sold his interest which included property and equipment to Parker-Northwest Paving Company. Parker-Northwest Paving started Canby Sand & Gravel and continues to operate the site and gravel business to this day. Parker-Northwest purchased the "Page Property," in The 2

13 reason for the acquisition was to mine aggregate. The "Page Property", now called the Traverso Aggregate Site, is approximately one hundred seventeen acre tract of land located in the rural unincorporated area of Clackamas County. The historic use of the subject property has been limited to agriculture and aggregate mining. Approximately one hundred (100) acres has been in some type of seasonal farm use for decades. Approximately eight (8) acres has a prior history of aggregate extraction operations. In 1986, Wilmes Sand and Gravel obtained a Conditional Use Permit (CUP C) from Clackamas County that authorized for the extraction of raw aggregate materials. The aggregates were transported to a neighboring property (now owned by Cadman) for processing. In 1999, Parker-Northwest purchased the subject property, including the referenced aggregate extraction site. At the time of purchase, Parker-Northwest allowed "Wilmes" access to the extraction site for reclamation purposes. In 2012, the applicant decided (as a result of prolonged activities), to assume the reclamation responsibilities and requested that Oregon Department of Geology and Mineral Industries (DOGAMI) transfer, with Wilmes's approval, his Operating Permit and reclamation requirements to Parker-Northwest. Parker-Northwest is currently reclaiming the exhausted mining site under the DOGAMI Permit No Economic Development Analysis, prepared by Robert Traverso a. Summary The main goal of economic development is improving the well-being of a community or regional area through efforts that attract new business, industry, well-paying jobs, job retention, increased tax base, and quality of life. There is no single definition of economic development because communities and regional areas all differ in strengths and weaknesses resulting in unique challenges for economic development. Clackamas County is no exception to the ongoing challenges presented by developing a sustainable economic base that provides the foundation for future population growth, increased business, industry, and quality of life for citizens who work and reside in the County. Businesses are the backbone of a healthy economy. Parker-Northwest has invested in a revolving partnership with local cities, Clackamas County and our employees for the past forty-five (45) plus years in an effort to improve economic development and quality of life within the region. Our efforts include investing time and money in purchasing aggregate resource properties and equipment that are the basic foundation of our industry and provide employment (jobs) for local citizens working at our facilities. Parker-Northwest provides well-paying incomes and benefits to our employees. The monies earned ensure their families a high standard of living. In addition, other individuals closely related to the aggregate industry such as independent dump truck drivers, contractors, government maintenance employees, suppliers of services and goods depend on the products and revenues produced at Canby Sand and Gravel for sustainable employment. 3

14 b. Introduction Parker-Northwest has been a Clackamas County-based business for the past forty-five (45) plus years. The business was formed in 1970 and is a "spin off" of the former Charles T. Parker Construction Company, which was Clackamas County-based from 1922 through Many of the County and local cities infrastructure systems have been constructed by our firm. Aggregates from our Canby Sand and Gravel site have played an integral role in economic development within the County. Economic development and Parker-Northwest have been partners for decades. The firm is not only a supplier of necessary construction products; it also employs approximately thirty-five (35) people who have jobs at the Canby Sand and Gravel site. c. Population Growth: Clackamas County's population is projected to increase by fifteen (15) percent over the next ten (10) years. Based on population data reports, the three counties that make up the urban growth areas (METRO) will experience substantial population increases by year As a result of the anticipated population growth, new industrial, commercial, and businesses will be developed. County and city planners rely on a solid economic base as the foundation for improving quality of livability standards for citizens who work and live within the County. In order to accomplish livability goals which include attracting new industry and businesses to the area, planners and policy officials need to recognize and address the necessary infrastructure improvements that will be required in an effort to accommodate the projected growth. One of the foundations for future infrastructure construction is aggregate products. Aggregate products are essential in all construction sectors. Aggregate resource sites need to be located in the close proximity of urban growth areas. The close proximity provides for a competitive priced product delivered to a construction site. The subject site is located near several urban growth areas within the County. The subject property has significant aggregate reserves that will provide construction and government sectors with an important product for years to come. Aggregate producers such as Parker-Northwest partner with economic development not only for the creation of jobs and the revenues (tax) paid, but also for the important aggregate products produced. d. Employees: Wages and Benefits The County's Economic Development Plan identifies the need to establish higher than average wages as being an important factor in development objectives. The 2009 plan identifies a total of 1342 businesses within the County that employ between 20 to 100 employees with an average payroll of $34,079 per employee. Beginning in 2008, a severe recession devastated businesses and jobs. Employee wages decreased to below pre-recession levels. In 2012 the US Census reported that per capita money income for individual workers in Clackamas County dropped to $32,000 per year. In 2013, the average salary for employees working at Canby Sand and Gravel was $55,000. Additionally, employees received a benefit package (medical, pension & vacation) that averaged $24,000 per individual. 4

15 Based on the above data, employees working at Canby Sand and Gravel earn approximately $23,000 more (70%) per year than the average individual incomes. This is significant because the higher than average income provides for a higher standard of living for the employee's household. Sustainable well-paying jobs are important to economic development for several reasons. Family livability, stability and job advancement are positive factors resulting from higher than average incomes. e. Economic Distribution Parker-Northwest has an annual payroll of approximately two million ($2,000,000) dollars and benefit expenses totaling approximately one million ($1,000,000) dollars per year. A recent inhouse study revealed that 95% of our employees reside in Clackamas County. Economic studies conclude that the majority of households purchase services and goods from local businesses near where they live. This is an excellent indicator as to how dollars earned flow from employer to employee and to other businesses and their employees. In a non-recessionary economy, the cycle continues as long as the business remains successful. f. Tax Base In addition to providing employment, Parker-Northwest pays property tax on land and personal property tax on equipment owned. The amounts paid annually are approximately $60,000 and $10,000 respectfully. If the PAPA application is approved, the current property tax base for the subject site will increase as a result of a higher usage of the property. The property will be taxed on an industrial usage rather than the current agriculture rate. These corporate dollars contribute to the tax base of the county which then distributes to various sectors of the local economy. Parker-Northwest's annual volume is approximately six million ($6,000,000) dollars per year. Over the past forty-five (45) years of business the average yearly revenue generated by Parker- Northwest was ten million ($10,000,000) dollars or four hundred fifty million ($450,000,000) dollars total. The majority of those dollars trickled down to employees, service companies, suppliers, and goods. Once those operational monies are received, the recipients repeat the same cycle thereby contributing to economic development. g. Economic Value of Products Produced Parker-Northwest also partners with economic development in that aggregate products produced provide the essential products necessary in virtually all construction. The Oregon Department of Land Conservation and Development (DLCD) and The Department of Transportation, (ODOT) considers aggregates to be one of Oregon's most valuable resources. DLCD clearly stated when adopting OAR , (Goal 5) in 1996 that "The most widely used building material in Oregon isn't timber, steel, plastic or glass. It's aggregate, the sand, gravel, and crushed rock used to construct roads, foundations, buildings, and many other structures." h. Transportation of Aggregates DLCD also had the foresight to recognize that aggregates being a natural resource had to be protected (for use) in future land zoning and regulatory laws. They also recognized that in order to supply the private and public sectors of the economy with a competitive priced product, the location of the aggregate mining site needed to be located close to urban growth areas. The 5

16 reason for this is the cost of transporting aggregates is very expensive. The further the site is from a construction project, the higher the transportation cost is to the consumer. Another important factor that is often overlooked is that the closer the proximity of the aggregate source is to the sales market, the usage of state and local road systems is minimized compared to an aggregate resource site located at a further distance. The further the distance is to the job site the higher use of roads, which has a direct effect on the maintenance expense for taxpayers. Establishing and maintaining the price of aggregate is based on the interaction of buyers and sellers. If an alternate source of supply product is difficult to find, typically the cost of the product increases. The increased cost of aggregate products has a direct effect when industry, developers, municipalities, architects, and engineers analyze the location for future development. Typically, development costs are a determining factor when analyzing a potential industrial or development site. There are approximately eight hundred (800) aggregate sites permitted by DOGAMI in Oregon. Approximately eighty-five (85) percent are privately owned and operated. The remaining fifteen (15) percent are owned by the Department of Transportation and to some degree, by local governments. Most of these sites were started decades ago and are far less active than commercial aggregate sites. Most of the aggregate sites owned by ODOT are located in rural Oregon areas and are utilized for road construction and maintenance projects near the aggregate site. In this analysis, the cost of transporting aggregates from an active mining site located in the vicinity of an urban growth area is more expensive than utilizing aggregates from strategically located sites in desolate unpopulated areas. There is an approximate percentage break down of the need for aggregate products in the private sector and municipal usage for road construction projects and maintenance. The largest single category use of aggregate is in building and maintaining highways and urban road systems. i. Rural Industrial Property An important objective of the County's Economic Development Plan is to support business development in rural communities. The reference includes the cities of Canby, Molalla, Estacada, Damascus and Sandy. As mentioned in the Economic Development Plan, Clackamas County has a severe shortage of industrial and employment land. The expansion of available industrial land in southwest Clackamas County is presently limited to the Pioneer Industrial properties in Canby and the Rural Industrial (RI) zoned properties located between Canby and the City of Barlow. Present development is occurring at the Pioneer Industrial site. However, once developed, the Rural Industrial zoned property west of Canby is the next industrial expansion property available. Parker-Northwest owns approximately one hundred and fifty (150) acres of Rural Industrial Zoned property adjacent to the City of Canby on S. Highway 99E in addition to the subject Site. The current use of the property is aggregate mining and industrial use. Reclamation activities have been ongoing for the past thirty-eight (38) years. To date, our firm has reclaimed 6

17 approximately seventy-five (75) acres. Approximately two acres of previously mined property is reclaimed yearly. j. Post Mining Usage It is interesting to note that several former mining sites located in Clackamas County have been reclaimed and developed into industrial, commercial, residential and scenic properties. A list of the former mining sites, locations, and current usages are as follows: Description Location Former Operator Current Use Rich Valley Oregon City Jack Parker Oregon City Shopping Center Clackamas Sand & Gravel Clackamas Pacific Rock Products Industrial property NW Sand & Gravel Clackamas Portland Road & Driveway Industrial property Rock Creek Sand & Gravel Carver Rock Creek Sand & Gravel Residential Sub Division Tigard Sand & Gravel Stafford Tigard Sand & Gravel Residential Sub Division River Island Sand & Gravel Barton Parker-Northwest Donated to Metro Scenic-open space Over the years, Parker-Northwest has worked directly with State and County Land Use Planners in a coordinated effort to restore as much property as possible. These efforts will provide Clackamas County with available Rural Industrial property, i.e. "shovel ready" for future development. 3. Description of Surrounding Area As reflected in the attached Appendix G, Table 1, Impact Area Uses, and on Figure 2 the following is a brief description of the uses within the area. a. Properties to the Northeast and Adjacent to S. Highway 99E Properties are zoned Rural Industrial (RI). The type of uses include steel fabrication, heavy equipment storage, aggregate mining, equipment sales, auto body repair, electric motor repair, concrete batching, mechanical repair, woodworking, truck storage, RV parking, carpet sales, and a Ford vehicle dealership. b. Properties North of S. Highway 99E and Union Pacific Railroad S. Highway 99E and the Union Pacific Railroad separate the subject site from the incorporated City of Barlow. Barlow is a relatively small community, (population 135, per the 2010 US Census Bureau) and is often referred to as a "Hamlet" because there are only a few businesses located within the city's boundary. The referenced businesses are identified as a carpentry shop and a commercial storage facility. Properties located immediately west of Barlow (west side of Barlow Road) are zoned Rural Industrial and consist of heavy equipment storage, farm equipment sales and repair, a heating and air conditioning business, steel recycle facility, and a former two (2) to three (3) acre aggregate mining site. 7

18 c. Properties West of the Subject Site The property located immediately west (across S. Barlow Road) is owned by Cadman Materials, Inc. ("Cadman"). Clackamas County recently designated the land as a Significant Aggregate Resource Site and applied the MAO overly designation. d. Properties South of Subject Site The property located immediately south of the subject site is the existing Cadman aggregate operation and a residence identified as the Hanes Property. e. Barlow House Property The historic Barlow House is located on S. Highway 99E and lies between S. Tull Avenue and S. Barlow Road. The applicant shares a property line boundary on the east, south and west sides of the Barlow House property. B. Application Approval Criteria 1. Overview The intent of these applications is to expand the existing Wilmes Sand & Gravel site in order to replace a supply of onsite aggregate required for processing at Canby Sand & Gravel site. Specifically, the applicant is requesting the following: (1) amend the CCCP to designate approximately 117 acres of the Site identified as the above referenced tax lots as a Significant Aggregate Resource Site and (2) apply the Mineral and Aggregate Overlay (MAO), as designation to the Site and (3) approve Site Plan review for the Site pursuant to Section 708 of the CCZDO. In accordance with OAR (5) local governments are required to inventory and protect Significant Mineral and Aggregate Resource sites. Additionally, the Land Conservation and Development Commission (LCDC) have implemented rules pertinent to Goal 5 including provisions of OAR , which establishes procedures and criteria for designating a Natural Resource Site as significant. Provisions within OAR have been appealed in prior years with the Land Use Board of Appeals (LUBA) and the Court of Appeals affirming that OAR preempts local government criteria for designating Significant Resource Sites, "The Goal 5 rule for aggregate establishes a comprehensive regulatory scheme that is intended to supersede local review standards for aggregate." The Land Use Board of Appeals and the Court of Appeals has ruled that if a local government has yet to amend its Comprehensive Plan and regulations to support compliance of OAR that provisions of OAR (9) requires local governments to directly apply the requirements and procedures of OAR when evaluating a proposed aggregate mining application. 8

19 The County has not amended its Comprehensive Plan including Land Use regulations to include procedures consistent with OAR therefore, the County is required to follow the provisions of OAR as they apply to the applications and that the provisions of the County's Comprehensive Plan and Zoning Development Ordinance are not applicable to the application. 2. Mine Plan The applicant has developed a Mine Plan consistent with land use regulations and regulatory requirements pertinent to aggregate mining operations. The plan includes adopting impact mitigation measures recommended by expert consultants and engineers that will reduce impacts resulting from operations to the level of minimal or insignificant. The consolidated applications consist of expanding the Wilmes site to include the contiguous Site owned by the applicant. The mining operations will involve onsite aggregate processing or processing at the adjacent Canby Sand & Gravel site. Under either scenario, the aggregate will be transported across the Wilmes property to the north to the adjacent Canby Sand & Gravel site for processing with use of the current established transportation access to Highway 88E. The size of the Site is approximately 117 acres, which includes the proposed 79 acre aggregate extraction site as reflected in the Mine Plan. The Significance (Geology) Report prepared by Kuper Consultants estimates a minimum of 6.5 million tons of alluvial sand and gravel materials underlay the property and that the aggregates meet the applicable standards of Goal 5 to establish that the property is a Significant Mineral and Aggregate Resource Site. The Mine Plan identifies the contiguous sand and gravel property, operations and infrastructure facilities in place that serve the operations. Additionally, the plan describes operating procedures, methods and equipment used for extracting raw aggregates, processing plant description and location, equipment storage, employee parking, stormwater detention ponds, haul roads, access locations, transportation routes, and reclamation of the mine site. 3. Reclamation To the extent practical, reclamation of the site will be concurrent, where possible, with mining. The applicant has submitted a Conceptual Reclamation Plan centered on the designated "reclaimed beneficial use" of the mining site. The designated beneficial use is identified as a water feature and associated planting and is consistent with the allowable uses listed in OAR The Conceptual Reclamation Plan, Figure 13, is extensive and solid in design and function. The applicant has provided evidence, information, and details as to the procedures and methods to be employed at the extraction site which will meet regulatory compliance. The Plan identifies aggregate extraction cells, setback-buffer locations, construction details, haul roads, mining methods, offsite infrastructure, slope details, and reclaimed property. The Plan also identifies vegetation including ground cover and types of trees to be planted within the proposed buffersetback and extraction site area. The Plan is specific in detail and includes stockpile locations, measures and methods for storm and surface water control, dust, noise and water quality. Lastly, 9

20 the Plan represents a sound program that will provide as an important habitat where a variety of wildlife species will be attracted to the property for food, shelter, and protection. 4. Public Benefits Subject to demonstrated compliance with applicable criteria, the County can find that authorization of excavation and processing at the Site will be in the public's best interest. Society, as we know it today cannot sustain a healthy economic base without the important construction product identified as aggregate. Aggregate products are essential in the construction of new buildings, industrial sites, transportation networks, and residential development. The aggregate products produced at the adjacent Canby Sand and Gravel consist of high quality materials that meet the Department of Transportation (ODOT) specifications for base rock as well as asphaltic concrete and concrete products. The Site is located in the rural area of the County and lies outside the Urban Growth Boundary. Urban encroachment or conflicts will not significantly increase since adjacent uses and activities reflect generally the surrounding zoning of Exclusive Farm Use (EFU), Rural Industrial, and Residential. The nearest urbanized lands lie in the City of Barlow across Highway 99E to the north. Further, these circumstances will remain in place for some time since the County has designated the subjective site and surrounding lands as Rural Reserve. Traverso Aggregate is located in proximity to several cities where Urban Development occurs. The urban areas include the cities of Oregon City, Gladstone, Milwaukie, Lake Oswego, West Linn, Tualatin, Wilsonville, and the Sunnyside Corridor area. The entire region is readily accessible via major transportation networks. The benefit to the public is that a competitive priced material will reduce construction costs for infrastructure maintenance and new development in comparison to products being produced and delivered from sites located further in distances to the construction project. Designating the Site as Significant will also provide for the continued employment for approximately thirty five (35) employees and contribute to the standards of livability for their families. Employees at the adjacent Canby Sand and Gravel earn approximately seventy (70) percent more in salary and benefits than the average wage earner in Clackamas County. The above is a perfect example of a healthy economic development program, in that a major component of sustainability is to improve the livability standards of the citizens who live and work in the County. Lastly, designating the Site as a Significant Aggregate Resource Site would result in an increased tax base that is substantially higher than the current tax rate thereby, providing the County with additional monies that can be used for infrastructure development. All the above, serves in the public's interest, and provides the County with information supporting the designation of the Site as a Significant Aggregate Resource Site. 10

21 III. OREGON STATEWIDE PLANNING GOAL 5 The Goal 5 Review Process Site In evaluating a proposed mineral and aggregate resource site under OAR , the County must proceed through the following steps: (1) Is the mineral and aggregate resource significant? (2) If so, what is the extent of the resource's impact area? (3) What conflicts, if any, could be generated between the resource and existing or approved land uses in the impact area? (4) If conflicts are identified, are there are any reasonable and practicable measures that would minimize the conflicts? (5) If any identified conflicts cannot be minimized, does an analysis of the Economic, Social, Environmental, and Energy ("ESEE") consequences of the resource support approving the mining use? (6) If mining is approved, what is the post-mining use of the Site? (7) If mining is approved, does an ESEE analysis support the County allowing, limiting, or preventing conflicting uses within the impact area? A. Is the Mineral and Aggregate Resource Significant? (OAR (3)(a)) The site is significant based upon the quality, quantity, and location of the aggregate resource. OAR , Determining the Proposed Site as Significant In determining the proposed extraction site as a "Significant Resource," the applicant must provide information that substantiates the Significant Resource designation by providing evidence as to the quality, quantity, and location of the aggregate (OAR (3)(a)). As further explained below and in Appendix A, the project geologists at Kuper Consulting LLC (KC) have evaluated the site and determined that it meets these criteria. Therefore, the County should find that the site is a significant aggregate site. The following information demonstrates that the Site is a significant Goal 5 resource which qualifies for addition to the County's inventory of significant aggregate resource sites. Sampling of the resource and geologic data collection were conducted pursuant to established industry standards for the purpose of defining the quality and quantity of the resource at the Site consistent with OAR Division 23 requirements. 11

22 Goal 5 requires that a representative set of samples of aggregate material meet ODOT specifications for base rock. See OAR (3). Goal 5 does not define "representative samples," which leaves this determination to the judgment of a qualified geologist. Within the aggregate and development industries, it is typically the geologist or geotechnical engineer that decides what material samples provide the most accurate representation of the deposit that underlies the site and then apply their best professional judgment to assign laboratory tests of those representative samples. For the purpose of this PAPA, as reflected in Appendix A, a representative sample for quality can generally be defined as a sample that reflects the on-site variation in material characteristics present in the rock deposit. KC has evaluated over 26 different sites for Goal 5 Significance since the 1996 Goal 5 rewrite and has extensive experience in the geotechnical realm of evaluating a "representative sample". To assess the quality, quantity, and location of the resource, KC has reviewed published geology reports, completed a subsurface investigation of the Site, and submitted aggregate samples to a certified laboratory for quality testing. As is explained further below and in greater detail in Appendix A available site specific evidence demonstrates that the site meets the applicable criteria of OAR (3) and, accordingly, is a significant Goal 5 aggregate resource site. 1. Quality of the Resource "A representative set of samples of aggregate material in the deposit on the site meets applicable Oregon Department of Transportation (ODOT) specifications for base rock for air degradation, abrasion, and soundness * * *[.]" OAR (3)(a). OAR (3)(a) requires that the aggregate resource meet quality standards for base aggregate. Base aggregate is tested in the laboratory for its ability to withstand abrasion and degradation. Aggregate samples that meet specified durability criteria are accepted by Oregon Department of Transportation ("ODOT") for use as base aggregate. The abrasion test indicates how aggregate will withstand grinding actions (e.g., generated from heavy traffic). The air degradation test measures the quantity and quality of the material produced by attrition (e.g., repeated traffic loading and unloading). The sodium sulfate soundness test measures the quantity of material produced by repeated immersion in a corrosive solution of sodium sulfate. While ODOT has specific soundness criteria for asphaltic concrete aggregate, it does not have soundness criteria for base rock aggregate. 1 The ODOT Standard Specifications for Highway Construction (revised 2015, current edition) Section describes the requirements for base rock aggregate. As part of the base rock aggregate requirements under Durability Section (c) only the Abrasion and Degradation tests are required. Therefore, this test cannot be applied to base rock quality evaluations within the context of Goal 5, because there is no applicable ODOT standard for this quality characteristic. As described in Appendix A, the project geologists evaluated the quality of the resource through the following procedure: 1 Oregon Department of Transportation, Standard Specifications for Highway Construction (rev ed 2015). 12