TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 17, 2013
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend the agreement with Deutsch, Levy & Engel LLC, for legal services in representing the District in an environmental remediation action against Nicor/ComEd for District property at Oakton Street and McCormick Boulevard in Skokie, Illinois, in an amount of $55,000.00, from an amount of $596,380.34, to an amount not to exceed $651,380.34, Account 901-30000-667220, Purchase Order A84545 (As Revised)
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Dear Sir:
On December 19, 1996, the Board of Commissioners authorized the Purchasing Agent to issue a purchase order and enter into an agreement with Deutsch, Levy & Engel LLC, for legal services in representing the District in an environmental remediation action against Nicor/ComEd ("Utilities") for District property at Oakton Street and McCormick Boulevard in Skokie, Illinois, in an amount not to exceed $50,000.00. The case involves the District's efforts to have the prior owner (Nicor/ComEd) remediate the environmental contamination of the site resulting from their prior operation of a manufactured gas plant at the subject location.
As of January 3, 2013, the attached list of change orders has been approved. The effect of these change orders results in an increase in an amount of $546,380.34 from the original contract awarded of $50,000.00. The current contract value is $596,380.34. The prior approved change orders reflect a 1,093% increase in the original contract value.
On July 14, 2011, the Board of Commissioners authorized the settlement of the case whereby Nicor/ComEd agreed to remediate the District's property comprising 18 acres to TACO Tier 1 Residential Levels. The estimated cost to the utilities to remediate the District's property is approximately $60 million. The remediation work is anticipated to be completed in approximately three years. Additional funds in the amount of $55,000.00 are required for continued legal representation for the oversight of the remediation work and other ongoing matters involving the project.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and 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 $55,000.00 (9.2% of the current contract value), from an amount of $596,380.34, to an amount not to exceed $651,380.34.
Funds are available in Account 901-30000-667220.
Requested, Ronald M. Hill, General Counsel, RMH:STM:TN:vp
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 January 17, 2013
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