TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 19, 2018
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order to exercise option to extend for a three-year period with PT Chicago, LLC for space at Presidential Towers located at 575 West Madison Street, in Chicago, Illinois for TARP Telemetry Radio Equipment for a period from September 1, 2018 through August 31, 2021, in an amount not to exceed $179,265.71, Account 101-69000-612330, Requisition 1478966
Body
Dear Sir:
Authorization is requested to issue a purchase order to exercise an option to extend the agreement for a 36 month period with PT Chicago, LLC, for rental space at Presidential Towers located at 575 West Madison Street, in Chicago, Illinois for TARP Telemetry Radio Equipment for a period from September 1, 2018, through August 31, 2021. Under the current extension rental agreement with PT Chicago, LLC, the annual cost which escalated on September 1, 2017 and will end on August 31, 2018 is $55,723.44 or $4,643.62 monthly.
The licensor fee for the extension of the agreement would be as follows:
With Electricity Charge
9/1/2018-12/31/2018 $19,138.52 $19,338.52
1/1/2019/-12/31/2019 $57,989.70 $58,589.70
1/1/2020-12/31/2020 $59,729.39 $60,329.39
1/1/2021- 8/31/2021 $40,608.10 $41,008.10
The current license agreement provides that the annual fee due and payable under a new agreement shall be increased by 3% of the fee in effect on the date immediately preceding the respective renewal anniversary date. The Maintenance and Operations Department has requested that the District enter into an extension of the license agreement for a three (3) year period as the antenna and TARP repeater stations are critical to the communication path between TARP control structures and the controlling operators. The Maintenance and Operations Department considers these costs to be reasonable.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to exercise the option to extend the agreement with PT Chicago, LLC, in an amount not to exceed $179,265.71.
Funds for the 2018 expenditure in the amount of $19,338.52 are available in Account 101-69000-612330. The estimated expenditure for 2019 is $58,589.70; for 2020 is $60,329.39; and for 2021 is $41,008.10. Funds for the 2019, 2020 and 2021 expenditures are contingent upon the Board of Commissioners' approval of the District's budget for those years.
Requested, John P. Murray, Director of Maintenance and Operations; Susan T. Morakalis, General Counsel, JPM:STM:HSW:BTK:TN:bh
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 April 19, 2018