The city's Planning Commission prepared the draft agreement which stipulates 13 guidelines for frac sand mining and any future expansion of its facilities.
The guidelines include how near a residential area the facility can get, hours of operation, moisture levels and how to deal with dust and noise created from the mining activity.
Biesanz agreed to all the stipulations in the non-conformity use agreement.
Council member Gerry Krage cast the lone no vote without comment.
In other business, the council unanimously approved the 2013 budget and property tax levy. The levy is set to go up 1.2-percent over 2012's amount.
The levy increase is due mainly to a pair of large infrastructure projects, the bike path and airport.