qualifications, experience, alternate bid items, proposed schedule, subcontractors qualifications/references, technical compliance and other bid information that is in the best interest of the
project. In the event that a construction contract is successfully bid by a related person, bids and recommendations are required to be submitted to our Chief Financial Officer and our Chief Operating Officer for submission to the Audit Committee
for its approval. Change orders relating to contracts with related parties are required to be approved by the same officers (Chief Operating Officer or Chief Financial Officer) and/or the Audit Committee, as applicable, that pre-approved the original related person transaction; provided that the original pre-approval of a contract constituting a related person transaction may include pre-approved allowances for change orders not exceeding 10% of the value of the contract.
The credit
agreement for our term loan facility and revolving credit facility provides that, subject to certain exceptions, we may not enter into any transaction with any affiliate of ours, whether or not in the ordinary course of business, unless our Board
determines in good faith that such transaction is on fair and reasonable terms substantially as favorable as would be obtainable by us at the time in a comparable arms length transaction.
We engage Casella Construction, Inc., a company owned by John W. Casella, our Chief Executive Officer and the Chairman of our Board, his son
John Casella II, his brother Douglas R. Casella, the Vice Chairman of our Board, and Mr. Douglas Casellas son, Joseph Casella, to provide construction and related services for us, including construction, closure and capping activities at
our landfills. Total purchased services from Casella Construction, Inc. charged to operations or capitalized to landfills from January 1, 2019 to December 31, 2019 was $7,990,160, of which $850,571 was outstanding and included in either
accounts payable or other current liabilities at December 31, 2019. All contracts awarded to Casella Construction, Inc. in excess of $500,000 were approved in accordance with the procedures described above for bidding projects in which a
related person is a bidder. In addition, we have approved ongoing contracts with Casella Construction, Inc., which we expect will result in additional payments by us to Casella Construction, Inc. Total revenue recorded pursuant to these contracts
from January 1, 2019 to December 31, 2019 was $132,410.
We are also party to two real estate leases with Casella Associates,
LLP, a Vermont limited liability company owned by Messrs. John Casella and Douglas Casella. These leases relate to our corporate headquarters in Rutland, Vermont, and our Montpelier, Vermont facility, and provide for aggregate monthly payments by us
of $28,877, subject to an annual escalation provision based on increases in the consumer price index, through their expiration in August 2023.
From 1977 to 1992, we operated an unlined landfill located in Whitehall, New York, owned by Bola, Inc., a corporation owned by Messrs. John
Casella and Douglas Casella, which operated as a single-purpose real estate holding company. We paid the cost of closing this landfill in 1992 and have agreed to pay all post-closure obligations. From January 1, 2019 to December 31, 2019,
we paid an aggregate of $8,694 pursuant to this arrangement. As of December 31, 2019, we had accrued $37,391 for costs related to those post-closure obligations.
In connection with Mr. Douglas Casellas service as President of Casella Waste Management, Inc., our wholly-owned subsidiary, in
fiscal 2019 we granted Mr. Douglas Casella a restricted stock unit award with a grant date fair value of $165,000 and paid $8,890 for life insurance premiums.
Michael Casella, the son of Mr. John Casella, is employed by the Company as a general manager. From January 1, 2019 through
December 31, 2019, Mr. Michael Casella earned $165,442 as salary, bonus, and other benefits related to his employment and received a restricted stock unit award with a grant date fair value of $8,002.
Elizabeth Casella, the daughter of Mr. John Casella, is employed by the Company as Director of Development &
Coordination. From January 1, 2019 through December 31, 2019, Ms. Casella earned $193,197
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