TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 7, 2013
COMMITTEE ON ENGINEERING
Mr. David St. Pierre, Executive Director
Title
Authorization for payment to the Illinois Department of Natural Resources for a permit in the amount of $10,100.00 and pledging Certificate of Deposit investments in the amount of $313,100.00 in connection with McCook Reservoir Expanded Stage 2 Overburden Removal, SSA, Contract 73-161-DH, Account 401-50000-645620
Body
Dear Sir:
In connection with the captioned project, it is necessary to obtain an Illinois Department of Natural Resources (IDNR) Mining Permit for the disposition of overburden from the McCook Reservoir Expanded Stage 2 site. The fee for the IDNR Mining Permit for the Expanded Stage 2 portion of the McCook Reservoir is $10,100.00.
In addition to the fee, the District is required to post a performance bond related to the mining permit as required pursuant to the Illinois Department of Natural Resources Administrative Code section 300.170. Acceptable forms of the bond include a performance bond issued by a surety company, a letter of credit issued by a bank, and the pledge of Certificate of Deposit investments. The District intends to pledge $313,100.00 in existing Certificate of Deposit Investments for the period of 1,000 days, the duration of the project, in lieu of a performance bond or letter of credit. All interest earnings will be retained by the District. This solution was chosen as a no cost alternative to provide the required pledge as compared to the performance bond or letter of credit options that would cost the District up to $2,000.00 per year.
Funds are available in Account 401-50000-645620.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve providing a payment of the $10,100.00 permit fee and pledging $313,100.00 in Certificate of Deposit investments in lieu of a performance bond to the IDNR.
It is further requested that the Executive Director recommend to the Board of Commissioners that the Chairman of the Committee on Finance and the Clerk be authorized and directed to execute any necessary documents in connection with the subject permit on behalf of the District after they are approved by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Requested, Catherine A. O'Connor, Director of Engineering, WSS:KMF
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Frank Avila, Chairman Committee on Engineering
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for March 7, 2013