TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 5, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization for the Executive Director or his designee to solicit amended bids from the two highest bidders for a 39-year lease of approximately 11.66 acres of District real estate located at 3301 South California Avenue in Chicago, Illinois; Main Channel Parcel 42.03 subject to the terms and conditions stated herein
Body
Dear Sir:
At its meeting of September 18, 2014, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise for the public tender of bids a 39-year lease of approximately 11.66 acres of District real estate located at 3301 South California Avenue in Chicago, Illinois and known as Main Channel Parcel 42.03.
The bid opening was held on November 18, 2014, and the following bids were received:
Bidder Initial Annual Rental Bid
Ameropan Oil Company $607,010.00
(current tenant)
Gardner Gibson, Inc. $776,000.00
Both bidders exceeded the established minimum bid of $601,000.00.
The District's leasing statute provides that:
"If there is more than one responsible bid, the board of commissioners may authorize and direct the executive director to solicit from the 2 highest responsible bidders written amendments to their prior bids, increasing their rental bid proposal by at least 5% in excess of their prior written bid, or otherwise amending the financial terms of their bid so as to maximize the financial return to the sanitary district during the term of the proposed lease. Upon the executive director's tentative agreement with one or more amended bids, the bids may be submitted to the board of commissioners with the recommendation of the executive director for acceptance of one or rejection of all. The amendments may not result in a diminution of the terms of the transaction and must result in an agreement that is equal to or greater in value than the highest responsible bid initially received." (70 ILCS 2605/8c[4])
The leasing statute was amended in 2000 by adding the above provision that allows for a re-bid. The provision was added to the leasing statute to allow parties to amend their bids when a current tenant, who occupied the site under a long-term lease and had invested significant sums constructing and improving its infrastructure, was outbid and to increase rental income.
It is requested that the Executive Director or his designee be authorized to solicit from the two bidders reported herein written amendments to their bids with the minimum acceptable initial annual rental amended bid being established at $814,800.00 which is 5% higher than the highest bid of $776,000.00.
After receipt and review of the amended bids, the Executive Director will present a recommendation to the Board of Commissioners in accordance with the afore-referenced statute.
Requested, Ronald M. Hill, General Counsel, RMH:STM:ss
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 March 5, 2015
Attachment