TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 18, 2014
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend the agreement with Quarles & Brady LLP (Quarles) to represent the District's interest in the ComEd appeal of the delivery rate proceeding before the Illinois Commerce Commission (ICC) as a member of the REACT Coalition, and participate in settlement discussions to remedy the estimation method used by ComEd in their Embedded Cost of Service Study (ECOSS) and to participate in discussions of the ComEd Efficiency Program, in an amount of $125,000.00, from an amount of $166,000.00 to an amount not to exceed $291,000.00, Account 101-66000-601170 Purchase Order 3076742
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Dear Sir:
On December 6, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Quarles & Brady LLP (Quarles), to represent the District's interest in the ComEd appeal of the delivery rate proceeding before the Illinois Commerce Commission (ICC) as a member of the REACT (Request Equitable Allocation of Costs Together) Coalition, and participate in settlement discussions to remedy the estimation method used by ComEd in their Embedded Cost of Service Study (ECOSS) and to participate in discussions of the ComEd Efficiency Program, in an amount not to exceed $26,000.00.
As of September 4, 2014, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $166,000.00 from the original amount awarded of $26,000.00. The current contract value is $166,000.00. The prior approved change order reflects a 538% increase to the original contract value.
The purchase order with Quarles enabled the District to participate as a member of REACT in the new rate case 13-0387, which arose out of the original rate case, 07-655 and the subsequent rate case 10-0467, and in discussions with ComEd concerning the Energy Efficiency Program administration improvements. REACT's efforts have thus far delayed and reduced the rate increase and have resulted in approximately $3,320,634.00 in annual savings for the District since 2008. Further, REACT hopes to improve the program administration of ComEd's energy efficiency program administration and increase the number of energy efficiency projects completed at large facilities. This may result in the District receiving additional DCEO grant funding for energy efficiency projects. .
An increase in the purchase order for years 2014 and 2015 is being requested at this time in order to complete the appeal process and associated settlement discussions for the ICC's "Non Formula" rate case and to finalize the new requested rate, to minimize future costs to the District. This purchase order increase will fund the District's arguments through the appeal process and post-judgment proceedings along with lobbying and related legal services for a self-directed Energy Efficiency Program for municipalities. As this issue has progressed through several rate cases and has an indeterminate schedule, authorization is requested to amend the legal services agreement with Quarles to include representation of the District's interest in future rate cases involving similar issues.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order and amend the agreement in an amount of $125,000.00 (approximately 75% of the current contract value), from an amount of $166,000.00 to an amount not to exceed $291,000.00 and to amend the legal services agreement with Quarles to represent the District's interest in the future rate cases.
Funds for the current year are available in Account 101-66000-601170. Funds for the subsequent year 2015 are contingent on the Board of Commissioners' approval of the District's budget for that year.
Requested, Manju Prakash Sharma, Director of Maintenance and Operations, AQ:SO'C:RSE
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 18, 2014.
Attachment