TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 5, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase purchase order and amend agreement with Schwartz Cooper, Chartered, Attorneys at Law, to represent the Metropolitan Water Reclamation District of Greater Chicago in an action brought by Apex Oil Company relating to 3301 South Kedzie Avenue in Chicago, Illinois, Main Channel Atlas Parcel 42.02, in the amount of $150,000.00, from an amount of $275,000.00, to an amount not to exceed $425,000.00, Account 901-30000-667220, Purchase Order 3025685
Body
Dear Sir:
On April 8, 2004, the Board authorized the retention of the firm of Schwartz Cooper, Chartered, Attorneys at Law, to represent the District in a lawsuit filed by Apex Oil Company. Outside counsel was recommended in this instance due to the environmental issues relating to the case. The property commonly known as 3301 South Kedzie Avenue in Chicago, Illinois, contained 6 aboveground storage tanks. Apex Oil Company allegedly stored its petroleum product in tanks 3-6 and in September 2003 requested to remove its product from the tanks. The District agreed to allow Apex Oil to remove its product so long as it also cleaned and/or removed the 4 storage tanks as well. Apex Oil did not agree to such conditions and, in response, filed a lawsuit in federal court against the District to remove its product alleging conversion.
The District issued a purchase order and entered into an agreement with Schwartz Cooper on April 8, 2004, in the amount of $30,000.00 to represent the District in this matter. On May 5, 2005, the purchase order was increased from $30,000.00 to $75,000.00. On April 6, 2006, the purchase order was increased from $75,000.00 to $125,000.00. On June 7, 2007, the purchase order was increased from $125,000.00 to $175,000.00. On October 4, 2007, the purchase order was increased from $175,000.00 to $275,000.00. The last increase was requested to retain several experts required to testify in the case due to the complexity and intensity of the litigation and preparation for trial.
Apex Oil’s complaint filed in federal court was dismissed resulting in Apex Oil filing an inverse condemnation claim in state court. The matter is now being litigated in state court, and additional resources are required to continue the District’s defense. Accordingly, an increase in the purchase order issued to Schwartz Cooper in the amount of $150,000.00 is being recommended to allow for continued work on the case and to prepare for trail. The increase was not foreseeable and is in the public interest.
In view of the foregoing, it is requested that the Purchasing Agent be authorized to increase the purchase order with Schwartz Cooper, Chartered, Attorneys at Law, to represent the Metropolitan Water Reclamation District of Greater Chicago in an action brought by Apex Oil Company relating to 3301 South Kedzie Avenue in Chicago, Illinois, Main Channel Atlas Parcel 42.02, in the amount of $150,000.00, from an amount of $275,000.00, to an amount not to exceed $425,000.00, Account 901-30000-667220, Purchase Order 3025685, Requisition 1130896.
Requested, Frederick M. Feldman, Attorney, FMF:DAL:CL:STM:nm
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
ORDERED passed by affirmative roll call vote of a majority of the Commissioners present this June 5, 2008. Approved, President Terrence J. O’Brien