TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 17, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to Illinois Central Railroad Company, a wholly owned subsidiary of the Canadian National Railway Company, to Provide Railroad Track Maintenance for the Stickney Water Reclamation Plant, in a total amount not to exceed $36,000.00, Account 101-69000-612670, Requisition 1549913
Body
Dear Sir:
Authorization is requested to issue a purchase order to the Illinois Central Railroad Company, a wholly owned subsidiary of the Canadian National Railway Company, to keep in effect the existing agreement to maintain and keep clear of obstructions a turnout and adjacent track designated “Track No. C174” at the Stickney Water Reclamation Plant, beginning September 1, 2021, and terminating August 31, 2026.
These services are to provide maintenance of “Track No. C174” which is owned by the Illinois Central Railroad Company. It is important that this interconnection remain in operation so that railroad cars can access a main line for transport to and from facilities/locations other than the HASMA, Vulcan, and LASMA drying sites. It is currently used to facilitate the movement of biosolids dump cars to Findlay, Ohio for rehabilitation and for the delivery of tank cars of magnesium chloride to the Stickney Plant for use at the Ostara Phosphorus Recovery Facility. In addition, it has been used on occasion in the past to deliver large equipment to the plant.
Illinois Central Railroad Company is the only railroad that has rights to provide rail service to the District’s Stickney Water Reclamation Plant, and no other common carrier railroad has operating rights on the Illinois Central Railroad Company’s tracks, other than the Illinois Central Railroad Company to access the Stickney Water Reclamation Plant. The Illinois Central Railroad Company has submitted prices for the services required. Inasmuch as the Illinois Central Railroad Company, is the only source of supply for the services required, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
The aforementioned agreement, titled “District Track Agreement ICR-91933,” dated October 12, 2011 and signed November 30, 2011, continues indefinitely at the mutual agreement of both parties. Not included in the agreement are track repairs and renewals, which will be billed to the District separately, should they occur.
Illinois Central Railroad Company is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement (MPLA) and Affirmative Action Ordinance, Revised Appendix D are not applicable due to the specialized nature of the services required.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order with the Illinois Central Railroad Company, in an amount not to exceed $36,000.00.
Funds for the 2021 expenditures in the amount of $6,000.00 are available in Account 101-69000-612670. The estimated expenditures for 2022, 2023, 2024, 2025 and 2026 are $6,000.00 each year respectively. Funds for the 2022, 2023, 2024, 2025 and 2026 expenditures are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Funds are available in Account 101-69000-612670.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:MS:es
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 June 17, 2021