TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 8, 2013
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend agreement with the law firm of Tabet, Divito & Rothstein, LLC to represent the District in an appeal of Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation, et al., Case No. 13-0307, in an amount of $250,000.00, from an amount of $300,000.00, to an amount not to exceed $550,000.00, Account 101-30000-601170, Purchase Order 3076305
Body
Dear Sir:
On February 7, 2013, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter in an agreement with the law firm of Tabet, Divito & Rothstein, LLC ("Tabet") in the amount of $300,000.00 for the purpose of representing the District in an appeal filed with the Illinois Appellate Court, entitled Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation, et al., Case No. 13-0307. The appeal seeks to overturn a judgment entered against the District by Judge Kathleen M. Pantle of the Circuit Court of Cook County in the amount $36,432,047.00. At the center of the dispute is the alley located between the District's Main Office Building and the newly-developed Ritz Carlton Residences immediately east of the alley. In their counter-claim against the District, the Ritz developers claimed that the District interfered with their right to use the alley pursuant to several easements they hold, thereby delaying their construction project and causing them to incur significant damages. In entering the above judgment, the trial court ruled on the side of the developers.
No prior change orders exist.
While Tabet has completed a substantial amount of work, there still remains the significant task of writing the District's appellate court briefs, including the opening and reply briefs, and arguing the case before a panel of appellate judges on a date that has yet to be determined. The additional funds requested in this transmittal letter are necessary for Tabet to continue its work on a matter that is of vital importance to the District.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
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 $250,000.00 (83.3% of current contract value), from an amount of $300,000.00, to an amount not to exceed $550,000.00.
Funds are available in Account 101-30000-601170.
Requested, Ronald M. Hill, General Counsel; RMH:STM:CMM:TN:rg
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 August 8, 2013