TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 4, 2026
COMMITTEE ON JUDICIARY
Mr. John P. Murray, Executive Director
Title
Authority to enter into a settlement agreement resolving a dispute with AGC Liquidation Corporation f/k/a American Gases Corporation arising from Contract 22-641-11 in the amount of $301,316.58
Body
Dear Sir:
On October 21, 2021, the District issued a purchase order to American Gases Corporation (“AGC”) for Contract 22-641-11 for the furnishing and delivering of liquid carbon dioxide to the Stickney Water Reclamation Plant. Under that contract, AGC was required to commence deliveries on or about December 28, 2021.
Beginning on July 19, 2022, the District asserts AGC failed to provide liquid carbon dioxide. AGC asserted a force majeure condition prevented its compliance. After repeated requests that AGC perform under the Contract, AGC did not resume deliveries. Because liquid carbon dioxide is essential to the plant’s operations, the District was required to obtain liquid carbon dioxide from alternative suppliers at a total additional cost to the District for the remainder of the Contract term of $301,316.58. The District also asserts it incurred additional cleaning costs due to the delayed deliveries.
As a result of the increased costs, the District’s Law Department made a formal demand for repayment. However, AGC had ceased operations and sold its assets. And as of October 2025, it was voluntarily dissolved with the Illinois Secretary of State and the entity became known as AGC Liquidation Corporation, which allows the company to legally wrap up its business.
Despite the dissolution, the District’s Law Department was able to negotiate a proposed settlement with the former shareholders of AGC. Specifically, they agreed to reimburse the District $301,316.58 as a full and final settlement of all claims relating to AGC’s alleged non-performance under Contract 22-641-11.
The General Counsel finds the proposed settlement to be reasonable and in the best interest of the District.
Therefore, the General Counsel respectfully requests that the Board of Commissioners grant authority to enter into a settlement agreement resolving all claims arising from Contract 22-641-11 with AGC Liquidation Corporation f/k/a American Gases Corporation in the amount of $301,316.58. 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:ATF
Recommended, John P. Murray, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 4, 2026