TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 21, 2026
COMMITTEE ON INFORMATION TECHNOLOGY
Mr. John P. Murray, Executive Director
Title
Authorization to settle payment dispute claim with AT&T Enterprises, LLC, f/k/a AT&T Corp against the District related to various telecommunication related services, for a final payment of $120,092.93, Account 101-27000-612210 (As Revised)
Body
Dear Sir:
Authorization is sought to settle a payment dispute between AT&T Enterprises, LLC f/k/a AT&T Corp. (AT&T) and the Metropolitan Water Reclamation District of Greater Chicago (MWRD) related to various telecommunications services. Beginning in 2007, the Board authorized the Director of Procurement and Materials Management to issue purchase orders and enter into agreements with AT&T Global Services for various telecommunications-related services. AT&T Global Services was a specialized division within AT&T Corp. that provided telecommunication services for government agencies. AT&T began to offer these services under the AT&T Corp. name in 2013 and then rebranded as AT&T Enterprises, LLC in 2024.
Specific account numbers were assigned to these services by AT&T. These account numbers have remained constant during the issuance of subsequent purchase orders to AT&T Corp and then AT&T Enterprises, LLC. Please refer to Table 1 in the attachment for a list of the specific services covered by the proposed settlement, the respective account numbers, vendor information, purchase order information, and related Board authorization.
From August 2024 to present, MWRD and AT&T have attempted to resolve outstanding balances attributed to the accounts referenced above. These balances span multiple years and purchase orders. AT&T claims that MWRD owes it $378,960.90 in total on these accounts. MWRD staff engaged in an extensive review of past invoices and payments tendered on these accounts and concluded that MWRD owes AT&T an amount totaling $120,092.93 due to misapplied payments and unposted credits. To resolve this dispute, AT&T has agreed to issue MWRD, a credit of $274,000.00 toward the outstanding balances. In exchange, MWRD will pay AT&T $120,092.93 to bring these accounts current. AT&T and MWRD will execute a Release and Settlement Agreement memorializing these terms and releasing each other from any further liability or claim regarding prior balances on these accounts.
As shown in Table 2 of the attachment, the credit of $274,000.00 will be applied to the outstanding past due balance on MWRD account **********867. The MWRD will then pay the past due charges via direct voucher on the other accounts listed totaling $120,092.93.
It is in MWRD’s best interest to settle this dispute. The credit offered by AT&T and the amount to be paid by the MWRD represent a reasonable compromise after good faith efforts by both parties to review the payment dispute. By accepting this credit and paying the remaining balance, the MWRD settles AT&T’s outstanding claims and avoids potential litigation.
Accordingly, the Director of Information Technology requests authorization to settle the payment dispute claim with AT&T against the MWRD, related to various telecommunications related services and that the sum of $120.092.93 be approved as final payment. He also requests that he be authorized to execute such documents as may be necessary to affect this settlement.
Funds are available in Account 101-27000-612210.
Requested, Sean T. Kelly, Director of Information Technology, STK:uu
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 May 21, 2026
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