TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 6, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A Perkovich, Executive Director
Title
Authority to increase purchase order with the law firm of Neal & Leroy, LLC, to represent the District in acquiring certain property rights in connection with the construction, operation, and maintenance of the Addison Creek Channel Improvements Project (Contract 11-187-3F) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois, in an amount of $300,000.00, from an amount of $600,000.00, to an amount not to exceed $900,000.00, Account 501-50000-612430, Purchase Order 3094927
Body
Dear Sir:
On June 1, 2017, the Board of Commissioners (“Board”) authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with the law firm of Neal & Leroy, LLC to represent the District in acquiring certain property rights in connection with the construction, operation and maintenance of the Addison Creek Channel Improvements Project (Contract 11-187-3F) (“Project”) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois. The designated right-of-way for the project requires the District to acquire property interests impacting approximately 175 parcels of land consisting of 271 property index numbers, including both residential and commercial properties located across all six municipalities. The needed property interests include a combination of fee simple takings and permanent or temporary easements.
Prior to May 29, 2019, one change order was approved by the Board on January 24, 2019 and is attached hereto. The effect of this change order is an increase in the amount of $200,000.00 from the original amount awarded of $400,000.00. The current contract value is $600,000.00.
Since the execution of the agreement, Neal & Leroy, LLC has provided legal assistance in the negotiations of the complex acquisitions and has filed ten condemnation lawsuits on behalf of the District. Neal & Leroy, LLC is also overseeing the relocation assistance program for eligible property owners to ensure compliance with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act. To date, the District has successfully relocated eight families in connection with the Project and three families will be moving into replacement homes by the end of July.
A change order is requested in order for Neal & Leroy, LLC to complete the pending negotiations and condemnation cases (including necessary quick-take hearings), and to file additional condemnation lawsuits where an agreement cannot be reached with the property owners. In addition, Neal & Leroy, LLC will continue to oversee the relocation assistance program for the remaining persons who are displaced due to the Project. This includes three residential parcels and up to sixteen residents of a mobile home park in Melrose Park. In addition, the remaining work requires personal property appraisals to determine compensation for the impacted mobile homes and a billboard located in the right-of-way. To minimize legal costs, the District has been handling all closings and municipal easements in-house, and will continue to do so for the remainder of the right-of-way acquisition.
This change order is in compliance with the Illinois Criminal Code because the additional legal assistance necessary to complete the right-of-way acquisitions was not reasonably foreseeable at the time the contract was signed. The change is germane to the original contract as signed, and the change order 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 $300,000.00 from an amount of $600,000.00, to an amount not to exceed $900,000.00.
Funds are available in Account 501-50000-612430.
Requested, Susan T. Morakalis, General Counsel, and Catherine A. O’Connor, Director of Engineering, STM:EMA:BJD:GA:nm
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 6, 2019
Attachment