TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 19, 2024
COMMITTEE ON STORMWATER MANGEMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to enter into an Intergovernmental Agreement with and make payment to the City of Chicago for the design, construction, operation, and maintenance of the Le Moyne Street and Maypole Avenue Underground Storage Projects in Chicago (24-IGA-19), in an amount not to exceed $6,000,000.00
Body
Dear Sir:
Authorization is requested to enter into an intergovernmental agreement (IGA) with and make payment to the City of Chicago (City) for the design, construction, operation, and maintenance of the Le Moyne Street and Maypole Avenue Underground Storage Projects on the west side of Chicago (24-IGA-19), in an amount not to exceed $6,000,000.00.
The City is planning to install underground stormwater storage facilities on Le Moyne Street, between Luna Avenue and Lorel Avenue, and on Maypole Avenue, between Cicero Avenue and Lavergne Avenue. The purpose of the proposed projects is to provide additional capacity for local sewers and to relieve flooding during short, intense storm events, like the July 2, 2023, storm that inundated neighborhoods on the west side of Chicago and surrounding areas.
On October 6, 2009, the District and the City entered into an IGA regarding stormwater management within the corporate limits of the City. Pursuant to the Stormwater IGA, the District and the City agreed to work together on identifying possible projects to address stormwater management problems in the City. Following the July 2, 2023, storm event, the City conducted an analysis of underground storage projects that would help to relieve flooding and identified a number of possible locations, including those noted above. On May 16, 2024, the Board of Commissioners authorized the District to negotiate an IGA to share the cost of the Le Moyne Street and Maypole Avenue Underground Storage Projects. The Le Moyne Street and Maypole Avenue projects will provide approximately 1.7 million gallons of stormwater storage and flood protection to over 3,000 structures spanning over 500 acres in the 29th and 37th Wards on Chicago’s west side, at an estimated total cost of approximately $12,000,000.00.
The City and the District have agreed in principle to the terms of the IGA, which include payment by the District towards construction costs in an amount not to exceed $6,000,000.00. The total project cost, including design and permitting of all stormwater improvements to be undertaken by the City, is estimated to be $12,000,000.00. Partial payments to the City will be made at predefined intervals during construction, which is anticipated to commence in 2025. The City has contributed to engineering and other design-related costs, and will assume responsibility for construction, maintenance, and operation of the project. The City will also be solely responsible for any change orders. The IGA contains provisions that allow the District to review the project’s design and perform inspections after construction. The IGA requires the City to award the construction contract in conformance with the City’s Purchasing Act and Affirmative Action requirements.
The project will conform with the City’s Minority-owned and Women-owned business procurement programs (MBE/WBE) as set forth Section 2-92-420 et seq. of the Municipal Code of Chicago, which is currently 26 percent MBE and 6 percent WBE. In keeping with the Board’s request to receive summary reports documenting the attainment of diversity goals across District’s stormwater partnerships, the City will be required to provide information on the attainment of the MBE/WBE utilization for this project, which will be included in the summary report to be submitted to the Board on an annual basis.
Based on the foregoing, it is requested that the Board of Commissioners grant authority for the District to enter into an IGA with and make payment to the City in an amount not to exceed $6,000,000.00. It is further requested that the Chairman of the Committee on Finance, Executive Director and Clerk be authorized to execute said agreement on behalf of the District, as well as any documents necessary to effectuate the transaction and conveyance, upon approval by the Director of Engineering as to technical matters and by the General Counsel as to form and legality.
Funds in the amount of $6,000,000.00 are anticipated to be spent over an 18-month period, in accordance with the IGA, after it is executed. Funds from Account 501-50000-612400 requested in future years are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
Requested, Catherine A. O’Connor, Director of Engineering KMF:JK
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 19, 2024
Attachment