TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 1, 2016
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order to the Illinois Central Railroad Company (ICRR), a wholly owned subsidiary of the Canadian National Railway Company, to Provide Railroad Track Maintenance for the Stickney Water Reclamation Plant, in an amount not to exceed $30,000.00, Account 101-69000-612670
Body
Dear Sir:
Authorization is requested to issue a purchase order to the Illinois Central Railroad Company (ICRR), a wholly owned subsidiary of the Canadian National Railway Company, to keep in effect the existing agreement to maintain and keep clear of obstructions a turnout and adjacent track designated “Track No. C174” at the Stickney Water Reclamation Plant, beginning January 1, 2016, and terminating December 31, 2020.
These services are to provide maintenance of “Track No. C174” which is owned by the Illinois Central Railroad Company (ICRR). It is important that this interconnection remain in operation so that railroad cars can access a main line for transport to and from facilities/locations other than the HASMA, Vulcan, and LASMA drying sites. It is currently used to facilitate the movement of biosolids dump cars to Findlay, Ohio for rehabilitation and for the delivery of tank cars of magnesium chloride to the Stickney Plant for use at the Ostara Phosphorus Recovery Facility. In addition, it has been used on occasion in the past to deliver large equipment to the plant.
Illinois Central Railroad Company (ICRR), is the only railroad that has rights to provide rail service to MWRDGC's Stickney Water Reclamation Plant, and no other common carrier railroad has operating rights on ICRR's tracks other than ICRR to access the Stickney Water Reclamation Plant. Illinois Central Railroad Company (ICRR) has submitted prices for the services required. Inasmuch as Illinois Central Railroad Company (ICRR), is the only source of supply for the services required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
The aforementioned agreement, titled “District Track Agreement ICR-91933,” dated October 12, 2011 and signed November 30, 2011, continues indefinitely at the mutual agreement of both parties. Not included in the agreement are track repairs and renewals, which will be billed to the District separately, should they occur.
Illinois Central Railroad Company (ICRR) is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement is not applicable because of the specialized nature of the work. If trade work is required, in-house trades will perform the work.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to Illinois Central Railroad Company (ICRR), in an amount not to exceed $30,000.00.
Funds for the 2016 expenditures in the amount of $6,000.00 are available in Account 101-69000-612670. The estimated expenditures for 2017, 2018, 2019, and 2020 are $6,000.00 each year respectively. Funds for the 2017, 2018, 2019, and 2020 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:JN:ms
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 December 1, 2016