TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase Contract 08-443-11 Remediate the Slurry Oil Release at the District’s Main Channel Atlas Parcel Number 42.02, to SET Environmental, Inc. (SET), in an amount of $120,000.00, from an amount of $350,000.00 to an amount not to exceed $470,000.00, Account 901-30000-667220, Purchase Order 5000920
Body
Dear Sir:
On July 31, 2008, 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. Remediation of the slurry oil release was deemed essential for the protection of public health, safety and the environment and the $25,000.00 emergency contract expiration date was set for December 31, 2008.
As of August 14, 2008, the attached change order has been approved. The effect of this change order resulted in an increase in an amount of $325,000.00 from the original declared emergency amount of $25,000.00. The current contract value is $350,000.00. The prior approved change order reflects a 1300% increase to the original contract value.
Though the remediation of the slurry oil spill has been substantially completed, there exists an ongoing need to provide 24-hour security at the site in order to forestall additional vandalism and theft that could cause an additional release of slurry oil. During the remediation of the slurry oil release in August and September 2008, the District required SET to provide 24-hour security for the site and the District has extended this requirement for the months of October, November, and December 2008 following SET’s demobilization from the site at the end of September. The cost for this ongoing 24-hour security is approximately $20,000.00 per month. The cost to station a District police officer at the site on a 24-hour basis would be more than $23,000 per month (only salary included, no benefit costs, vehicle costs, or overtime costs included). Due to the low value of the oil and the low winter temperatures, it is now anticipated that the District contract for the removal and sale of the slurry oil remaining in the three aboveground storage tanks will not begin until April 1, 2009.
These costs for ongoing 24-hour security were not included in the original $350,000.00 remediation estimate for the spill. Therefore, it is requested that the Board of Commissioners authorize the Purchasing Agent to execute a change order to increase Emergency Contract 08-443-11 in an amount of $120,000.00 to pay for the six months (October 2008 through March 2009) of 24-hour security and extend the expiration date of the contract to March 31, 2009.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonable foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Purchasing Agent to execute a change order to increase emergency Contract 08-443-11 in an amount of $120,000.00 from an amount of $350,000.00 to an amount not to exceed $470,000.00.
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 December 18, 2008
Attachment