TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON PURCHASING
Mr. Richard Lanyon, General Superintendent
Title
Authority to increase purchase order and amend agreement for Dykema Gossett PLLC to represent the District in a lawsuit and appeal involving the District’s interest in the alley adjacent to its Main Office Building (100 East Erie Street) in an amount of $150,000.00, from an amount of $360,000.00, to an amount not to exceed $510,000.00, Account 101-30000-601170, Purchase Order 3037852
Body
Dear Sir:
In September 2005, a direct voucher was issued to the law firm of Schwartz Cooper Greenberger & Krauss to commence legal work regarding the impact of proposed development of privately owned land on the District’s alley located east and adjacent to its Main Office Building. Because the initial legal work exceeded $10,000.00, on February 2, 2006, the Board of Commissioners authorized the Purchasing Agent to issue a purchase order to the law firm of Schwartz Cooper Greenberger & Krauss in an additional amount not to exceed $10,000.00. At the Board meeting of this date, the Purchasing Agent reported that the law firm of Schwartz Cooper has merged with and now operates under the name of Dykema Gossett PLLC and, therefore, the purchase orders issued to Schwartz Cooper have been retroactively assigned to the law firm of Dykema Gossett PLLC.
As of December 17, 2008, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $350,000.00 from the original purchase order. The current contract value is $360,000.00. The prior approved change orders reflect a 3,500% increase in the original contract value.
This matter which began as a discussion with the adjacent property owners concerning the parties’ respective rights to use the District’s alley has developed into contentious litigation. The District filed a declaratory action in the Circuit Court of Cook County and has defended against the defendant’s motions for a preliminary injunction in full evidentiary hearings - Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation et.al, Case Number 06 CH 13817. The initial ruling by the Court has expanded the defendant’s easement rights for two of the three buildings beyond what the District believes was contemplated by the original grant. But the Court upheld the District’s position that the defendants had no easement rights with respect to the third building (664 North Michigan Avenue building). The District has appealed to the Illinois Appellate Court, First Judicial District, Fourth Division, that portion of the lower court’s ruling expanding the defendant’s easement rights beyond what the District believes is contained within the easement grant - MWRD v. Terra Foundation et.al and 664 North Michigan Avenue et.al v. MWRD - Docket Number 08-2223. .
Additional funds in the amount of $150,000.00 are requested and required to prosecute the appeal and after the appeal is decided to prosecute the underlying complaint for declaratory relief pending in the Circuit Court.
This change order is in compliance with the Illinois Criminal Code since the change is germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Purchasing Agent to execute a change order to increase the purchase order and amend agreement in an amount of $150,000.00 (42% of current contract value), from an amount of $360,000.00, to an amount not to exceed $510,000.00.
Funds are available in Account 101-30000-601170.
Requested, Frederick M. Feldman, Attorney, FMF: CL:nm
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
DATE OF INCREASE FROM TO
October 19, 2006 $10,000.00 $30,000.00
July 12, 2007 $30,000.00 $60,000.00
April 17, 2008 $60,000.00 $160,000.00
September 18, 2008 $160,00.00 $360,000.00