TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 6, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to decrease Intergovernmental Agreement for Project 03-606-3P Replacement of Heat Exchangers at the Fox River Water Reclamation District’s Main Plant to the Fox River Water Reclamation District in an amount of $26,885.67, from an amount of $794,312.78, to an amount not to exceed $767,427.11, Account 101-50000-612490, Purchase Order 3023547
Body
Dear Sir:
On December 4, 2003, the Board of Commissioners authorized the Director of Procurement and Materials Management to award an Intergovernmental Agreement for Project 03-606-3P Replacement of Heat Exchangers at the Fox River Water Reclamation District’s Main Plant to the Fox River Water Reclamation District in an amount not to exceed $1,064,998.60. The agreement was scheduled to expire February 2025.
There was only one change order for a decrease of $270,685.82 that was approved on the board meeting of April 5, 2012.
Fox River Water Reclamation District has paid off its loan with the Illinois Environmental Protection Agency and has given the District the option to pay off the District's portion of the loan or continue our semiannual payments. Paying off our portion of the loan will save the District $26,885.67 in interest expense.
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.
In addition, it is requested that monies allocated from 2022-2025 be utilized to make the final payment for this project in 2021.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to decrease Contract 03-606-3P in an amount of $26,885.67 (2.5% of the current contract value), from an amount of $794,312.78, to an amount not to exceed $767,427.11 and that final payment be made to Fox River Water Reclamation District in 2021.
Funds will become available in Account 101-50000-612490,contingent upon approval of a funds transfer also submitted for this May 6, 2021 Board Meeting.
Requested, Catherine A. O’Connor, Director of Engineering, KMF
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 May 6, 2021
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