TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Approve Biosolids Application Spring Lease Program Payments to Jackie Stuenkel in the amount of $54,000.00 and Bob Bluer in the amount of $43,500.00
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BACKGROUND:
On November 21, 2023, the Mayor and City Council authorized the award of the 2024 Biosolids Disposal Contract, at the contract price of $2,333,930.00, to New Era Spreading, Inc. In addition to awarding the Disposal Contract the Mayor and City Council approved the Spring Lease program which provides a $150.00 per acre payment to farmers who accept land applications in the springtime. This payment compensates the farmers for additional tillage needed to plant after sludge application. The Spring Lease Program also includes the provision to pay a $150.00 per acre reduced yield guarantee. The Public Service Committee will review this matter.
CONCLUSION:
Mr. Jackie Stuenkel provided 180 acres for biosolids application this spring. Per the Spring Lease Agreement Mr. Stuenkel is owed $150.00 per acre for additional tillage needed to prepare the land to plant a summer crop. In addition to the tillage Mr. Stuenkel agreed to plant late allowing for the application of biosolids well into June. The City agreed to pay the additional $150.00 per acre reserved for reduced yield. Therefore, the total payment owed to Mr. Stuenkel is $54,000.00 (180 acres x $300.00/acre).
Mr. Bob Bluer provided 145 acres for biosolids application this spring. Per the Spring Lease Agreement Mr. Bluer is owed $150.00 per acre for additional tillage needed to prepare the land to plant a summer crop. In addition to the tillage Mr. Bluer agreed to plant late allowing for the application of biosolids well into June. The City agreed to pay the additional $150.00 per acre reserved for reduced yield. Therefore, the total payment owed to Mr. Bluer is $43,500.00 (145 acres x $300.00/acre).
Funding for the spring lease program payments will be charged to the Water / Sewer Operating Fund / WSTP / Contractual Services (Org 50080803, Object 524200, $54,900.00) and Water / Sewer Operating Fund / Aux Sable / Contractual Services (Org 50080804, Object 524200, $43,500.00).
Section 2-438 of the City of Joliet Code of Ordinances states that purchases over twenty-five thousand dollars ($25,000.00) may be awarded without written specifications under certain circumstances. One (1) of these circumstances apply:
(a) Purchases when authorized by a concurring vote of two-thirds (2/3) of the Mayor and City Council;
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve the Biosolids Application Spring Lease Program Payments as follows:
1. Mr. Jackie Stuenkel for the use of 180 acres for the spring biosolids application in the amount of $54,000.00 and;
2. Mr. Bob Bluer for the use of 145 acres for the spring biosolids application in the amount of $43,500.00.
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