Number
101355
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution authorizing the expenditure of City funds and the execution of a close-out agreement with Product Terminaling of Wisconsin, Inc. for remediation work in connection with City-owned property located at 1414 S. Harbor Drive.
Analysis
This resolution authorizes the Port of Milwaukee to expend up to $150,000 of the 2010 carryover funds in its operating budget to fund remediation and closure of the contaminated City-owned site located at 1414 South Harbor Drive, including construction of an engineered cap. It further authorizes and directs the Municipal Port Director, acting on behalf of the City, to execute an agreement with Product Terminaling of Wisconsin (the former tenant of this property) relating to completion of this environmental remediation and closure project.
Body
Whereas, The City-owned Port of Milwaukee ("Port") property located at 1414 South Harbor Drive (the "site"), comprising approximately 7 acres, is under Wisconsin Department of Natural Resources ("DNR")-ordered remediation by the former tenant, Product Terminaling of Wisconsin ("PTW"), and its environmental consultant, Moraine Environmental, Inc. ("MEI"), relating to contamination at this location, including but not limited to an oil spill that occurred when PTW was leasing and operating an oil-handling facility at the site; and
Whereas, The Port would like to see this DNR case closed and the remediation activities completed so that the site can be returned to use for cargo support operation as quickly as possible; and
Whereas, PTW and MEI have negotiated with, and received approval from, the DNR for placement of an "engineered cap" on the site, which will result in conditional closure of the site; and
Whereas, The engineered cap will include features requested by the Port that will permit transfer and storage of large pieces of cargo on the site after closure; and
Whereas, Once the site is closed, the Port can potentially rent it for an much as $15,000 per acre per year; and
Whereas, MEI has taken bids for construction of the engineered cap and is ready to proceed with construction in the spring of 2011; and
Whereas, The estimated cost of the engineered cap is approximately $635,000; and
Whereas, The Port is willing to pay up to $150,000 of this cost in order to:
1. Achieve site closure.
2. Obtain features in the engineered cap that will allow the site to be used for the transfer and storage of large pieces of cargo.
3. Resume control of the site so that it is available for cargo operations.
; and
Whereas, The Port requested the carry-over of $150,000 in operating funds from its 2010 budget for the purpose of funding this environmental remediation project; and
Whereas, The City Attorney, the Department of Administration-Budget and Management Division and the Department of City Development all recommend proceeding with this financing arrangement; and
Whereas, The City Attorney, the Port and counsel for PTW have negotiated the attached agreement to permit construction of the engineered cap and closure of the site; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Port of Milwaukee is authorized to expend, through its Environmental Cleanup Fund special fund (Account Number 0480 4280 R425 006300), up to $150,000 of the funds carried over to 2011 from its operating budget to fund remediation and closure of the contaminated City-owned site located at 1414 South Harbor Drive, including construction of an engineered cap; and, be it
Further Resolved, That the Municipal Port Director, acting on behalf of the City, is authorized and directed to execute the attached agreement between the City and Product Terminaling of Wisconsin relating to construction of the engineered cap and closure of the contaminated site; and, be it
Further Resolved, That all City officers, agencies and departments are authorized and directed to execute all documents and to take any and all actions necessary to implement the terms and purposes of this resolution.
Requestor
Port of Milwaukee
Drafter
LRB125868-1
JDO
03/01/2011