TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 20, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to exercise an option to renew for a five (5) year term on the agreement dated June 1, 2010, with 500 West Monroe Owner LLC, successor to Piedmont 500 West Monroe Fee, LLC for leasing space where a TARP back-up repeater is installed at 500 West Monroe Street in Chicago in an amount not to exceed $283,578.00. Account 101-69000-612330, Requisition 1393744 (As Revised)
Body
Dear Sir:
On June 17, 2010, the Board of Commissioners authorized the issuance of a purchase order and the entry into an agreement with Broadway 500 West Monroe LLC, n/k/a 500 West Monroe Owner LLC for a five (5) year period to provide rental space at 500 West Monroe Street in Chicago for a TARP back-up repeater that was installed under Contract 06-839-3E TARP Radio Upgrade and Backup Antenna for the Stickney Service Area, Calumet Service Area and North Service Area ("Agreement"). The Agreement was for an initial five-year term that commenced June 1, 2010, and expired May 31, 2015.
Under the Agreement, the District has an option to extend the term for three consecutive five-year terms. On March 5, 2015, the Board authorized the first five-year renewal term of the Agreement. Such renewal term commenced June 1, 2015 and expires May 31, 2020. The current annual fee paid to 500 West Monroe Owner LLC is $46,543.44.
The Agreement provides that the annual fee under any extension period be increased by 5% 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 exercise its second option to renew the Agreement for a five-year period as the antenna and TARP repeater station are critical to the communication path between TARP control structures and the controlling operators.
Accordingly, the new annual fee schedule is as follows:
June 1, 2020 $48,871.00
June 1, 2021 $51,315.00
June 1, 2022 $53,880.00
June 1, 2023 $56,574.00
June 1, 2024 $59,403.00
SUBTOTAL $270,043.00
Electrical: $13,535.00
TOTAL $283,578.00
Additionally, the District will pay for the associated operating electrical charges in the estimated amount of $13,535.00 over the five-year period.
The Maintenance and Operations Department considers the cost of this extension Agreement to be reasonable. The Multi-Project Labor Agreement is not applicable due to the specialized nature of the services required.
The Agreement and the original purchase order were issued to 500 West Monroe Owner LLC without advertising pursuant to Section 11.4 of the Purchasing Act. In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into the extension agreement with 500 West Monroe Owner LLC without advertising pursuant to Section 11.4 of the Purchasing Act in an amount not to exceed $283,578.00.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to issue a purchase order to exercise an option to renew for a five (5) year term on the agreement dated June 1, 2010, with 500 West Monroe Owner LLC pursuant to the original agreement in an amount not to exceed $283,578.00.
Funds for the 2020 expenditure in the amount of $51,578.00 are available in Account 101-69000-612330. The estimated expenditure for 2021 is $54,022.00; for 2022 is $56,587.00; for 2023 is $59,281.00; and for 2024 is $62,110.00. Funds for the 2021, 2022, 2023 and 2024 expenditures are contingent upon the Board of Commissioners' approval of the District's budget for those years.
Requested, Susan T. Morakalis, General Counsel, STM:EMA:npe
Requested, John P. Murray, Director of Maintenance and Operations
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 February 20, 2020