TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 5, 2012
COMMITTEE ON REAL ESTATE
Mr. David St. Pierre, Executive Director
Title
Authority to issue a 5-year non-exclusive roadway easement to Waste Management of Illinois for use of a roadway along Jeffrey Avenue (Extended) between 134th and 137th Streets in Chicago, Illinois. Consideration shall be a biosolids disposal agreement.
Body
Dear Sir:
Since April of 1979, Waste Management of Illinois (“Waste”) was granted a series of easements for use of a roadway along Jeffrey Avenue (Extended) between 134th and 137th Streets in Chicago, Illinois, to access its landfills to the south and west of the District’s property. Waste has requested a new 5-year easement for use of the road. Consideration under the current agreement is an annual fee of $15,000.00. Under prior easement grants, Waste agreed to accept biosolids at its landfill, thereby negating the payment of an annual easement fee.
In consideration of the District granting this easement, Waste has agreed to accept, at no cost to the District, a quantity of 14,000 tons of biosolids at its landfill in 2012, and a quantity of 10,000 tons of biosolids in 2013 as final cover material.
By disposing of biosolids at this local site, the District will realize an estimated savings in transportation costs of $92,400.00 in 2012, and $66,000.00 in 2013. The overall value of this proposal far exceeds any easement fee which would be paid to the District for use of the roadway.
The District’s technical departments have no objections to granting a new 5-year easement to Waste for continued use of the roadway and the biosolids disposal agreement.
Since Waste is currently uncertain if it will have a need for biosolids after 2013, a $15,500.00 annual fee will be assessed for use of the road for 2014 through 2016. This annual fee is based upon the fair market value fee assessed under the prior easement plus an inflationary rate of 3.5%.
It is requested that the Executive Director recommend to the Board of Commissioners that it authorize and approve the issuance of a 5-year non-exclusive roadway easement to Waste Management of Illinois for use of a roadway along Jeffrey Avenue (Extended) between 134th and 137th Streets in Chicago, Illinois. Consideration shall be a biosolids disposal agreement.
It is also requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute the easement agreement after it is approved by the General Counsel as to form and legality.
Requested, Ronald M. Hill, General Counsel, RMH:STM:BEB:rg
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Real Estate Development
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for January 5, 2012
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