TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 23, 2020
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 $900,000.00, to an amount not to exceed $1,200,000.00, Account 501-50000-612430, Purchase Order 3094927
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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, 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.
Two change orders have been approved by the Board on January 24, 2019 and June 6, 2019, attached hereto. The effect of these change orders was to increase the original awarded amount of $400,000.00 in the amount of $500,000.00. The current contract value is $900,000.00.
Another 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 relocation services for the residents of 15 mobile homes that are located near the Addison Creek in Melrose Park, IL (Meadowcreek Mobile Home Park.) This purchase order increase therefore includes fees payable to Urban Relocation Services, Inc. and fees and costs associated with obtaining appraisals. To minimize legal costs, the District handles 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 $900,000.00, to an amount not to exceed $1,200,000.00.
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:CN: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 January 23, 2020
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