TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 20, 2025
COMMITTEE ON PROCUREMENT
Mr. Brian A Perkovich, Executive Director
Title
Authority to increase purchase order with the law firm of Neal & Leroy, LLC, to represent the District in acquiring certain property rights in connection with the construction, operation, and maintenance of the Addison Creek Channel Improvements Project (Contract 11-187-3F) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois, in an amount of $48,560.71, from an amount of $2,180,000.00, to an amount not to exceed $2,228,560.71, Account 501-50000-612430, Purchase Order 3094927
Body
Dear Sir:
On June 1, 2017, the Board of Commissioners (“Board”) authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with the law firm of Neal & Leroy, LLC to represent the District in acquiring certain property rights in connection with the construction, operation and maintenance of the Addison Creek Channel Improvements Project (Contract 11-187-3F) (“Project”) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois. The designated right-of-way for the project required the District to acquire property interests impacting approximately 175 parcels of land (over 200 PINs), including both residential and commercial properties located across all six municipalities. The needed property interests included a combination of fee simple takings and permanent or temporary easements.
As of February 20, 2025, the attached list of change orders have been approved.
Original Contract Amount $400,000.00
Date of Board Approval 6/1/2017
Cumulative Change Order (2/7/2025) $1,780,000.00
% Change of Original Contract Value 545%
Current Contract Value $2,180,000.00
Requested Increase or Decrease $48,560.71
New Contract Value $2,228,560.71
% Change of Current Contract Value 2.2%
Total % Change of Original Contract Value 557%
The District recently settled the final pending eminent domain case for this Project, The Metropolitan Water Reclamation District of Greater Chicago v. Prime33 Development LLC, et al., Case No. 20L050009, as approved by the Board on February 6, 2025. The purpose of this change order is to fully close out this contract for legal services, which will cover all legal and court costs associated with resolving this eminent domain case (finalizing the settlement agreement, entering the agreed final judgment order, and all other costs associated with the trial preparation, including depositions and motions). The Law Department has been and will continue to handle all other legal matters associated with this Project during construction, such as easement enforcement.
This change order complies with the Illinois Criminal Code because the additional legal assistance necessary to complete this particular lawsuit was not reasonably foreseeable at the time the contract was signed. In particular, the case received an accelerated trial date from the presiding judge, which forced discovery and motion practice in a very short timeframe. This included the disclosure and depositions of engineering expert witnesses that were not anticipated in earlier stages of the litigation.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order and amend the agreement in an amount of $48,560.71 (2.2% of the current contract value) from an amount of $2,180,000.00, to an amount not to exceed $2,228,560.71.
Funds are available in Account 501-50000-612430.
Requested, Susan T. Morakalis, General Counsel, and Catherine A. O’Connor, Director of Engineering, STM:BJD:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for February 20, 2025
Attachment