TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 14, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase purchase order and amend the agreement for Emergency Contract 08-443-11, Remediate the Slurry Oil Release at the District’s Main Channel Atlas Parcel Number 42.02, to SET Environmental, Inc., in the amount of $325,000.00 from an amount of $25,000.00 to an amount of $350,000.00, Account 901-30000-667220, Purchase Order 5000920
Body
Dear Sir:
In accordance with Section 11.5 of the Purchasing Act, the Deputy Chief Engineer, in consultation with the General Superintendent, declared an emergency affecting public health and safety to mobilize SET Environmental, Inc. to Remediate the Slurry Oil Release at the District’s Main Channel Atlas Parcel 42.02. However, it is estimated that the $25,000.00 authorized by the General Superintendent will not be sufficient to complete the emergency work. The emergency contract 08-443-11 will terminate as of December 31, 2008.
Remediation of the slurry oil release is deemed essential to the protection of public health, safety and the environment.
On Wednesday July 30, 2008, District personnel were called to MCA 42.02 (the former Torco Oil leasehold) about 5:30 a.m. by the Chicago Fire Department due to a fire being set by illegal scrappers/vandals in the pump house on the former Torco dock. Once the fire had been extinguished, District staff began coordination of the cleanup of the dock area by District personnel.
Subsequent inspections of the areas surrounding the three remaining 1.5 Million-gallon plus (each) aboveground storage tanks revealed valves that had been opened and plates that had been removed allowing both minor and major releases of slurry oil from two of the three remaining tanks into the tank containment area. The minor releases were able to be quickly stopped by District staff by closing valves and/or plugging pipes, however the most significant release (approximately 25 gallons per minute) was unable to be stopped until 6:45 p.m. due to the removal of the internal parts of a large valve. The volume of slurry oil released into the containment area surrounding the tanks is estimated to be in excess of 10,000 gallons. As required by law, this release was reported to the United States Environmental Protection Agency’s National Response Center and the Illinois Emergency Management Agency on July 30, 2008.
It is hereby recommended that the Purchasing Agent execute a change order to increase Emergency Contract 08-443-11 in the amount of $325,000.00 from an amount of $25,000.00 to an amount not to exceed $350,000.00. Funds are available in Reserve Claim Fund Account 901-30000-667220.
Requested, Edmund J. Cook, Deputy Chief Engineer, EJC:MJL
Recommended, Darlene A. LoCascio, Purchasing Agent
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Purchasing
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 14, 2008