TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 18, 2020
COMMITTEE ON PROCUREMENT
Mr. Brian A Perkovich, Executive Director
Title
Authority to increase purchase order and amend the agreement with the law firm of Neal & Leroy, LLC, to represent the District in acquiring certain property rights in connection with the construction, operation, and maintenance of the Addison Creek Channel Improvements Project (Contract 11-187-3F) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois, in an amount of $400,000.00, from an amount of $1,200,000.00, to an amount not to exceed $1,600,000.00, Account 501-50000-612430, Purchase Order 3094927
Body
Dear Sir:
On June 1, 2017, the Board of Commissioners (“Board”) authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with the law firm of Neal & Leroy, LLC to represent the District in acquiring certain property rights in connection with the construction, operation and maintenance of the Addison Creek Channel Improvements Project (Contract 11-187-3F) (“Project”) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois. The designated right-of-way for the project requires the District to acquire property interests impacting approximately 175 parcels of land (over 200 PINs), including both residential and commercial properties located across all six municipalities. The needed property interests include a combination of fee simple takings and permanent or temporary easements.
Three change orders have been approved by the Board on January 24, 2019, June 6, 2019, and January 23, 2020, attached hereto. The effect of these change orders was to increase the original awarded amount of $400,000.00 in the amount of $800,000.00. The current contract value is $1,200,000.00.
With the legal assistance of Neal & Leroy, LLC under this contract, the District has made substantial progress on the right-of-way acquisition for the Project, including the following:
• 15 residential homes have been acquired and the residents provided with relocation assistance in accordance with the Uniform Relocation Assistance and Real Property Acquisition Act (“URA”).
• 42 easements (permanent and/or temporary) and partial fee acquisitions have been obtained through a combination of voluntary agreements and eminent domain proceedings.
• 3 mobile homes have been purchased and the residents provided with relocation assistance in accordance with the URA.
Another change order is requested in order for Neal & Leroy, LLC to complete the pending negotiations and condemnation cases (including necessary quick-take hearings), and to file additional condemnation lawsuits where an agreement cannot be reached with the property owners. In particular, additional legal services are needed to complete the following:
• 30 condemnation cases are currently pending in court. Due to the pandemic, all pending cases were postponed by the Chief Judge. However, Neal & Leroy has continued to carefully monitor all pending condemnation cases, file necessary motions, and communicate with opposing counsel in an attempt to resolve these matters.
• 12 mobile homes remain to be purchased and the residents are entitled to relocation assistance in accordance with the URA. These purchases must occur in a timely manner because the residents have been impacted by the pandemic and need the relocation assistance to avoid undue hardship to their families.
• Negotiations with 29 other property owners (impacting approximately 52 PINs) are ongoing. If an agreement cannot be reached with certain owners, additional condemnation lawsuits may be necessary to obtain the required property interests.
As part of the work described above, Neal & Leroy, LLC will continue to oversee the relocation assistance program for the remaining mobile home residents who are displaced due to the Project. This purchase order increase therefore includes fees payable to Urban Relocation Services, Inc. To minimize legal costs, the District will continue to handle the municipal easements in-house.
Neal & Leroy, LLC is a minority-owned and operated firm, and the relocation consultant retained by Neal & Leroy, Urban Relocation Services, Inc., is a women-owned business.
This change order is in compliance with the Illinois Criminal Code because the additional legal assistance necessary to complete the right-of-way acquisitions was not reasonably foreseeable at the time the contract was signed. Under the Illinois Eminent Domain Act, the District must first negotiate in good faith with all property owners before filing a condemnation complaint; as a result, the District does not know how many condemnation complaints will be necessary on projects of this nature until negotiations are underway. The change is germane to the original contract as signed, and the change order is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order and amend the agreement in an amount of $400,000.00 from an amount of $1,200,000.00, to an amount not to exceed $1,600,000.00.
Funds are available in Account 501-50000-612430.
Requested, Susan T. Morakalis, General Counsel, and Catherine A. O’Connor, Director of Engineering, STM:EMA:BJD:CN:nm
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 18, 2020
Attachment