TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 21, 2021
COMMITTEE ON PROCUREMENT
Mr. Brian A Perkovich, Executive Director
Title
Authority to increase purchase order and amend the 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) in the municipalities of Northlake, Stone Park, Melrose Park, Bellwood, Westchester, and Broadview, Illinois, in an amount of $500,000.00, from an amount of $1,600,000.00, to an amount not to exceed $2,100,000.00, 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 requires 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 include a combination of fee simple takings and permanent or temporary easements.
With a project of this magnitude and scope, the District utilizes the expertise of outside counsel to ensure that the project can proceed expeditiously and in accordance with the Illinois Eminent Domain Act and the Uniform Relocation Assistance and Real Property Acquisition Act (“URA”). In addition to legal services, this PO also covers the costs of the relocation agent (Urban Relocation Services, Inc.) which has been approximately 17% of the total. The PO also covers the court costs associated with condemnation actions filed on the District’s behalf, such as filing fees, costs to publish required legal notices, and appraisal services. The amount of these associated expenses to date has been approximately 6% of the total.
Four change orders have been approved by the Board on January 24, 2019, June 6, 2019, January 23, 2020, and June 18, 2020, attached hereto. The effect of these change orders was to increase the original awarded amount of $400,000.00 in the amount of $1,200,000.00. The current contract value is $1,600,000.00.
With the legal assistance of Neal & Leroy, LLC under this contract, the District is nearing completion of the right-of-way acquisition for the Project. All 16 residential homes have been acquired and the residents provided with relocation assistance in accordance with the URA. The 16 mobile homes required for the project have also been purchased, and the last residents are scheduled to move out in early January. In addition, many permanent and temporary easements and partial fee acquisitions have been obtained through a combination of voluntary agreements and eminent domain proceedings.
Another change order is requested for Neal & Leroy, LLC to complete the pending condemnation cases (including necessary quick-take hearings) and to file additional condemnation lawsuits where an agreement cannot be reached with the property owners through negotiations. The continuation of Neal & Leroy’s services is necessary to ensure that all property interests are obtained within the next few months so that the Engineering Department can stay on schedule to advertise the contract for the channel improvement work in Summer 2021. In particular, the remaining scope of acquisition work includes following:
• 25 condemnation cases are currently pending in court. Due to the pandemic, all pending cases were postponed by the Chief Judge in early 2020. However, the District’s cases are now proceeding on a regular schedule and several quick-take hearings have been scheduled for January and February based on the court’s earliest availability.
• Negotiations with 20 other property owners are ongoing. If an agreement cannot be reached with certain owners, additional condemnation lawsuits may be necessary to obtain the required property interests.
• Relocation services for the residents who were displaced by the project will be completed in January after the last mobile home residents move out. However, the services of the relocation agent will be needed for two commercial parcels where personal property and a billboard must be relocated to accommodate the project.
The amount requested in this change order is expected to cover the remaining legal services and court costs necessary to obtain title to all of the properties in the Project right-of-way through negotiated settlements and quick-take proceedings. If any of the contested matters proceed to trial at a later date, Board authority will be sought to make those final judgment payments.
Although this contract was entered into prior to the Board’s policy establishing an hourly fee cap for outside legal services, Neal & Leroy has agreed to accept the hourly rate cap ($250.00) for the remainder of the services to be performed. The current hourly rate for legal services in the contract is $295.00.
Neal & Leroy, LLC is a minority-owned and operated firm, and the relocation consultant retained by Neal & Leroy, Urban Relocation Services, Inc., is a women-owned business.
This change order complies with the Illinois Criminal Code because the additional legal assistance necessary to complete the right-of-way acquisitions was not reasonably foreseeable at the time the contract was signed. Under the Illinois Eminent Domain Act, the District must first negotiate in good faith with all property owners before filing a condemnation complaint; as a result, the District does not know how many condemnation complaints, quick-take hearings, or trials will be necessary on projects of this nature until negotiations are underway. The change is germane to the original contract as signed, and the change order is in the best interest of the District.
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 $500,000.00 from an amount of $1,600,000.00, to an amount not to exceed $2,100,000.00.
Funds are available in Account 501-50000-612430.
Requested, Susan T. Morakalis, General Counsel, and Catherine A. O’Connor, Director of Engineering, STM:EMA:BJD:CN:nm
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 January 21, 2021
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