TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 2, 2023
COMMITTEE ON JUDICIARY
Mr. Brian A. Perkovich, Executive Director
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Authority to settle a bid bond dispute entitled Copenhaver Construction, Inc. v. Metropolitan Water Reclamation District of Greater Chicago, Case No, 22 CH 02981 in the amount of $115,288.00
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Dear Sir:
On January 11, 2022, the District opened bids for its Flood Control Project on 1st Avenue from Roosevelt Road to Cermak Road, SSA, Contract 14-111-5FR. Copenhaver Construction, Inc. (“Copenhaver”) was the apparent low bidder on this contract.
A few hours after the bid opening, Copenhaver sent a letter to the District seeking to withdraw its bid without forfeiting its $288,220.00 bid bond. Copenhaver’s request to withdraw was because of an alleged mistake when bidding. The District denied Copenhaver’s request, filed a claim with Copenhaver’s surety for the entire bid bond amount, and awarded the project to the next lowest bidder.
In March 2022, Copenhaver filed a lawsuit in the Circuit Court of Cook County, Illinois entitled Copenhaver Construction, Inc. v. Metropolitan Water Reclamation District of Greater Chicago, Case No. 22 CH 02981, to prevent the District from collecting the bid bond. As part of this litigation, Copenhaver’s surety deposited $288,220.00, the bid bond amount, with the court.
As a full and final settlement of all claims in the litigation, Copenhaver has agreed to pay 40% of the bid bond, or $115,288.00 to the District. The District is not required to make any payment to Copenhaver. The General Counsel finds the proposed settlement to be reasonable and in the best interest of the District.
Accordingly, the General Counsel respectfully requests that the Board of Commissioners grant authority to settle a bid bond dispute entitled Copenhaver Construction, Inc. v. Metropolitan Water Reclamation District of Greater Chicago, Case No, 22 CH 02981 in the amount of $115,288.00. Additionally, the General Counsel requests authority to execute such documents as may be necessary to effectuate this settlement.
Requested, Susan T. Morakalis, General Counsel, STM:JTM:ECZ:JMP
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 2, 2023