TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Issue a purchase order and enter into an agreement with Broadway 500 West Monroe Fee LLC for a 5-year period, for leasing space to install a TARP back-up repeater at 500 W. Monroe in Chicago, Illinois, which will be installed under Contract 06-839-3E TARP Radio Upgrade and Backup Antenna, Stickney Service Area, Calumet Service Area and North Service Area, in an amount not to exceed $163,780.00, Accounts 101-50000-612330 and 69000-612330, Requisition 1307151 (As Revised)
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with Broadway 500 West Monroe Fee LLC (Broadway), for a 5-year period to provide rental space at 500 W. Monroe in Chicago, Illinois, for a TARP back-up repeater which will be installed under Contract 06-839-3E TARP Radio Upgrade and Backup Antenna, Stickney Service Area, Calumet Service Area and North Service Area. The tentative date for the agreement to expire is May 31, 2015.
The aforementioned location has been selected by the Engineering Department as the back-up site because of its proximity and similar height to Presidential Towers, which is currently the primary site for the TARP repeater. Broadway has submitted prices for the services required. As this site is the most practical site that is available to suit the requirements of the TARP back-up repeater and as Broadway is the sole owner of this building, nothing would be gained by advertising for bids per Section 11.4 of the Purchasing Act.
The first two years of this lease will be funded by the Engineering Department during the design phase of Contract 06-839-3E. The remaining years will be funded by the Maintenance and Operations Department.
The components of the total fee are as follows:
ITEM: FEE:
Year 1 (2010-2011) $17,500.00
Year 2 (2011-2012) $34,128.00
Year 3 (2012-2013) $35,700.00
Year 4 (2013-2014) $37,356.00
Year 5 (2014-2015) $39,096.00
TOTAL FEE (Not to Exceed) $163,780.00
The agreement will also contain an option whereby the District may extend the term of the agreement for three successive terms of five years each. In view of the location and the term, and in comparison to the other facility used by the District for a TARP repeater, the Engineering Department considers the proposed cost of the agreement to be reasonable.
Broadway, is registered and in good standing with the State of Illinois. 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 an agreement with Broadway 500 West Monroe Fee LLC without advertising, per Section 11.4 of the Purchasing Act, in an amount not to exceed $163,780.00.
Funds for the 2010 expenditure, in the amount of $17,500.00, are available in Account 101-50000-612330. The estimated expenditure for 2011 is $34,128.00, for 2012 is $35,700.00, for 2013 is $37,356.00, and 2014 is $39,096.00. Funds for the 2011, 2012, 2013, and 2014 expenditures are contingent on the Board of Commissioners' approval of the District's budget for those years.
Requested, Kenneth A. Kits, Director of Engineering, TEK:GG
Requested, Manju Prakash Sharma, Acting 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 June 17, 2010