TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 19, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to amend an agreement between the Metropolitan Water Reclamation District of Greater Chicago and the DuPage River/Salt Creek Workgroup, Purchase Order 3104550
Body
Dear Sir:
On November 15, 2018, the Board authorized the issuance of a purchase order and entering into an agreement with the DuPage River/Salt Creek Work Group (DRSCW), for membership dues, study assessments, and project assessments from 2019 through 2023 in a total amount not to exceed $4,718,895.00.
DRSCW is a non-profit organization formed in 2005 by local communities, water reclamation plants, and environmental organizations to better address water quality concerns and implement targeted watershed projects in the Salt Creek and the East and West Brand DuPage River Watersheds. The District was a founding member of DRSCW and currently participates to address water quality issues in the receiving streams for the District’s Egan and Hanover Park Water Reclamation Plants. The District’s continued participation in DRSCW and its study and project assessments is required to obtain a special condition in the District’s draft NPDES permits for these two water reclamation plants (the “NPDES Permits”).
In accordance with the Board’s authorization, the District and DRSCW entered into An Agreement Between the Metropolitan Water Reclamation District of Greater Chicago and the DuPage River/Salt Creek Workgroup dated May 3, 2019 (the “Agreement”). The Agreement sets forth a payment schedule for the District’s membership dues, study assessments, and project assessments. The projects to be completed by DRSCW under the requirements of the NPDES Permits include: Fawell Dam Modifications, Spring Brook Restoration, Fullersburg Woods Dam Modifications and Stream Restoration, and West Branch Stream Enhancement. The schedule of anticipated completion dates for these projects is set out in the NPDES Permits.
The District’s first project assessment payment was due on June 1, 2019. As of June 1, 2019, however, one project received funding from another agency and DRSCW had not yet awarded the other projects. As a result, the District did not pay its 2019 project assessment as DRSCW had no in-progress project for District’s assessment to fund. However, the District is still obligated under the Agreement to pay the 2019 project assessment, and all other project assessments authorized through 2023.
The agreement must be amended to memorialize that the 2019 project assessment has not yet been paid, the 2019 funds remain in the District’s possession, that the District will budget $2,000,000.00 for DRSCW projects in 2020, and that the District will retain possession of all future projects assessments through 2023 unless a project is identified for the assessment to fund.
Therefore, authorization is requested to amend an agreement between the Metropolitan Water Reclamation District of Greater Chicago and the DuPage River/Salt Creek Workgroup.
Funds for the 2020 expenditure for project assessments, in the amount of $2,000,000.00 are available in Account 201-50000-612400, contingent on the Board of Commissioners’ approval of the District’s budget for that year. The estimated expenditures for 2021, 2022, and 2023 are $1,000,000.00, $485,000.00, and $480,071.00, respectively and are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, John P. Murray, Director of Maintenance and Operations
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 December 19, 2019