TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 15, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order and exercise an option to extend the rooftop license agreement with PT Chicago, L.L.C. for space at Presidential Towers located at 575 West Madison Street, in Chicago, Illinois for TARP Telemetry Radio Equipment for a three (3) year period from September 1, 2021 through August 31, 2024, in an amount not to exceed $195,730.00 and to amend the rooftop license agreement to allow for biannual payments Account 101-69000-612330, Requisition 1556932
Body
Dear Sir:
Authorization is requested to issue a purchase order and exercise an option to extend the rooftop license agreement with PT Chicago, L.L.C. (“PT Chicago”) for space at Presidential Towers located at 575 West Madison Street, in Chicago, Illinois for TARP telemetry radio equipment for a three (3) year period from September 1, 2021 through August 31, 2024. Under the rooftop license agreement with PT Chicago (“Agreement”). The current annual license fee is $61,512.24.
Since 2000, the District has operated telemetry equipment at Presidential Towers. On May 21, 2015, the Board of Commissioners authorized the issuance of a purchase order and entry into the agreement with PT Chicago for a three (3) year period for this TARP repeater site. The agreement was for an initial three (3) year term that commenced September 1, 2015 and expired August 31, 2018. Under the agreement, the District has the option to extend the term for two consecutive three (3) year terms. On April 19, 2018, the Board authorized the first three (3) year renewal of the agreement. That renewal term commenced September 1, 2018 and expires August 31, 2021.
The Maintenance and Operations Department has requested that the District exercise the second option to extend the agreement for a subsequent three (3) year period, commencing on September 1, 2021 and expiring on August 31, 2024. The TARP telemetry radio equipment at Presidential Towers, including an antenna and TARP repeater station, is critical to the communication path between TARP control structures and the controlling operators. The Maintenance and Operations Department considers these costs to be reasonable.
The agreement provides that the annual fee due shall be increased by 3% each year on the renewal anniversary date. Additionally, the District will pay for the associated operating electrical charges in the amount of $1,800.00 for the three (3) year term. Therefore, the estimated total cost to the District to extend the agreement through August 31, 2024 is as follows:
Time Period Annual License Fee Electrical Cost Subtotal
9/1/2021 - 12/31/2021 $20,915.00 $200.00 $21,115.00
1/1/2022 - 12/31/2022 $63,370.00 $600.00 $63,970.00
1/1/2023 - 21/31/2023 $65,270.00 $600.00 $65,870.00
1/1/2024 - 8/31/2024 $44,375.00 $400.00 $44,775.00
FEE $193,930.00
Electrical $1,800.00
TOTAL $195,730.00
Additionally, the Maintenance and Operations Department has requested to amend the agreement to allow for biannual payments. Currently, license fees are paid monthly.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and exercise the option to extend the agreement, in an amount not to exceed $195,730.00.
Funds for the 2021 expenditure in the amount of $21,115.00 are available in Account 101-69000-612330. The estimated expenditure for 2022 is $63,970.00; for 2023 is $65,870.00; and for 2024 is $44,775.00. Funds for the 2022, 2023 and 2024 expenditures are contingent upon the Board of Commissioners' approval of the District's budget for those years.
It is further requested that the Board of Commissioners authorize the Chairman of the Committee on Finance and the Clerk of the District to execute an amendment to the Agreement to allow for biannual payments after it is approved by the General Counsel as to form and legality.
Requested, John P. Murray, Director of Maintenance and Operations; Susan T. Morakalis, General Counsel, JPM:STM:MTC:NOC:vp
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 July 15, 2021