TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 15, 2018
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
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Authority to increase purchase order and amend the agreement with Schiff Hardin LLP to represent and counsel the District in connection with renewable energy projects, in an amount of $100,000.00, from an amount of $450,000.00, to an amount not to exceed $550,000.00. Account 201-50000-612430, Purchase Order 3081196 (Deferred from the March 1, 2018 Board Meeting)
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Dear Sir:
On March 20, 2014, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Schiff Hardin LLP to represent and counsel the District in connection with renewable energy projects, in an amount not to exceed $150,000.00. The contract has no expiration date.
As of February 16, 2018, the attached change orders have been approved. The effect of these change orders resulted in an increase in an amount of $300,000.00 from the original amount awarded of $150,000.00. The current contract value is $450,000.00.
The reason for the requested change order is to enable Schiff Hardin LLP to continue to assist the District with regulatory issues and contract negotiations related to biogas utilization at the District’s Water Reclamation Plants. In addition to assisting with these regulatory issues and negotiations, Schiff Hardin LLP was also retained to provide advice on financial arrangements and mechanisms in both the biogas and other renewable energy sectors. To this end, this change order will allow Schiff Hardin LLP to complete its evaluation of the overall risk to the District of entering into the biogas renewable energy market. As part of this change order, Schiff Hardin LLP, with the assistance of its consultant, will include a thorough analysis of the available supply of organic materials to increase the District’s normal biogas production, in addition to ascertaining the demand and most feasible use of the biogas.
This change order is in compliance with the Illinois Criminal Code because the change is germane to the original agreement as signed and due to circumstances not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
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 $100,000.00 (22.2% of the current contract value) from an amount of $450,000.00 to an amount not to exceed $550,000.00.
Funds are available in Account 201-50000-612430.
Requested, Susan T. Morakalis, General Counsel, STM:LLD:EMA:TN:bh
Requested, Catherine A. O’Connor, Director of Engineering
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 15, 2018
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