TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Issue purchase order and enter into an agreement with the University of Illinois at Chicago, for a Geothermal Energy Feasibility Study, in an amount not to exceed $87,500.00, Account 101-16000-601170, Requisition 1306862
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with the University of Illinois at Chicago (UIC), for a geothermal energy feasibility study (feasibility study), at the Kirie Water Reclamation Plant (WRP), which will be conducted according to the terms and conditions of the Master Agreement between the District and UIC. This purchase order will expire on December 31, 2011.
The principal investigator for this project will be Dr. Sohail Murad, Professor and Chairman of the Department of Chemical Engineering at UIC. Dr. Murad has over 30 years of experience in teaching and conducting research in the field of thermodynamics as related to energy and environment, and his research team has worked very closely with engineers during the construction and operation of successful full-scale geothermal systems at UIC, which provide year-long cooling and heating to two buildings on campus. For the feasibility study, Dr. Murad and his team will be responsible for system design, equipment purchase and installation. The Environmental Monitoring and Research Division of the Monitoring and Research Department will be responsible for collecting historical effluent temperature data, evaluating available system space requirements, and post-system implementation energy data.
The geothermal energy system will be evaluated at the Kirie WRP to determine the feasibility of harnessing energy from the effluent water. The system is expected to supply up to 40 percent of the heating and cooling energy needs at the plant. Given the documented energy savings, the data collected could be used to design a complete system at this plant which would satisfy the entire energy needs for heating and cooling at substantially reduced cost. The design at the Kirie WRP could easily be applied to other facilities such as the North Side and the Egan WRPs.
UIC, the expert provider to conduct a geothermal energy feasibility study, has submitted pricing for the services required. Inasmuch as UIC is the expert provider for the services required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
UIC is a non-profit educational institution and is therefore not required to register with the State of Illinois.
The Multi-Project Labor Agreement is not applicable due to the specialized nature of the services required.
The total estimated cost of this project is $175,000.00. The Illinois Clean Energy Community Foundation will provide $87,500.00 under a grant to the District. The remaining $87,500.00 is the District’s share of the total estimated project cost.
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 UIC, in an amount not to exceed $87,500.00.
Funds are available in Account 101-16000-601170.
Requested, Louis Kollias, Director of Monitoring and Research, LK:TG:MPC:KB:js
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 12, 2010