TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 2, 2009
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend an agreement with Loeb & Loeb, LLP to pay attorneys’ fees incurred by Susan T. Morakalis in the case of Tri-River Docks v. Metropolitan Water Reclamation District of Greater Chicago, No. 05 L 007390, in an amount of $60,000.00, from an amount of $225,000.00 to an amount not to exceed $285,000.00, Account 101-30000-601170, Purchase Order 3051187
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Dear Sir:
On April 6, 2006, the Board of Commissioners issued orders authorizing the indemnification of Defendant employee Susan T. Morakalis for attorneys’ fees in the matter entitled Tri-River Docks v. Metropolitan Water Reclamation District of Greater Chicago and Susan T. Morakalis. The Defendant, Tri-River Docks, alleged that the District and Ms. Morakalis evicted it from the leasehold premises in violation of the District’s lease and its civil rights. Ms. Morakalis was permitted to obtain separate counsel in this matter since she is being sued personally. The District is represented in this case by Dykema Gossett PLLC. The orders for payment of Ms. Morakalis’ attorney were issued pursuant to an ordinance adopted on November 4, 1976, by the Board of Commissioners which authorizes indemnification of employees for costs and attorneys’ fees incurred by an employee arising out of staff’s employment, unless the employee is convicted of a crime.
On April 6, 2006, purchase order 3038264 in the amount of $50,000.00 was issued to Sonnenschein Nath & Rosenthal LLP to represent Ms. Morakalis. As of March 2, 2009, change orders have been issued resulting in an increase in the purchase order in an amount of $255,190.44, an increase of 410% in the original contract value. The subject purchase order was closed on September 4, 2007, at a total contract value of $305,190.46 due to the lawyers representing Ms. Morakalis’ transfer to a different law firm. Attached is a list of the change orders for this purchase order.
On May 15, 2008, a new purchase order (3051187) in the amount of $100,000.00 was issued to Loeb & Loeb, LLP so that the same attorneys could continue to represent Susan T. Morakalis in the subject lawsuit. As of March 2, 2009, a change order in the amount of $125,000.00 was issued for a 125% increase in the original contract value.
On December 23, 2008, summary judgment was granted in favor of Susan T. Morakalis and the District. Tri-River has filed a Notice of Appeal of the Circuit Court’s decision. Additionally, a petition to recover certain costs against Tri-River Docks has been filed. Additional funds are required for the firm to continue to represent Ms. Moraklais in this case. An increase in the purchase order in the amount of $60,000.00 is recommended.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract and was not foreseeable.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement & Materials Management to execute a change order to increase the purchase order and amend the agreement in an amount of $60,000.00 (24% of the current contract value), from an amount of $225,000.00, to an amount not to exceed $285,000.00.
Funds are available in Account 101-30000-601170.
Requested, Frederick M. Feldman, General Counsel, FMF:CL:STM:nm
Recommended, Darlene A. LoCascio, Director of Procurement & Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 2, 2009
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