TRANSMITTAL LETTER FOR BOARD MEETING OF FEBRUARY 4, 2021
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
Body
Dear Sir:
On November 15, 2018, the Board authorized issuing 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 an amount not to exceed $4,718,895.00. On December 5, 2019, the Board authorized an amendment to the payment schedule for project assessments. Authorization for a second amendment is now requested to further clarify the District’s participation in DRSCW’s proposed projects.
The District is a founding member of the DRSCW, a non-profit organization formed by local communities, water reclamation plants, and environmental organizations to address water quality issues at the watershed level. The watershed projects are in the Salt Creek, and the East and West Branch DuPage River Watersheds, which are the receiving streams for the District’s Egan and Hanover Park Water Reclamation Plants.
The District’s participation in DRSCW is required as part of a special condition in the Egan WRP and Kirie WRP NPDES permits. The projects to be completed 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 included in 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”). Under the Agreement, the District’s share of the project assessments portion through 2023 is $3,965,071.00. The project assessments are calculated based on the million gallons per day of discharge from the Egan WRP and Hanover Park WRP.
Although the District is obligated under the Agreement to pay the project assessments, the District has not paid DRSCW any project assessments, and the Agreement was not amended in December 2019 because the projects are not constructed yet. DRSCW and the District have worked together to identify projects that the District’s project assessments could fund while adhering to District policies and ordinances, such as diversity requirements.
DRSCW and the District have determined that the most appropriate way for the District to meet its obligations under the Agreement is for the District to fund and construct one of the projects identified in the NPDES permits as a District contract adhering to District standards and policies. DRSCW and the District will select a project estimated at approximately $3,965,071.00. The construction contract for the project selected will be brought to the Board for its consideration and award.
The Agreement must be amended to memorialize this new arrangement between DRSCW and the District where the District will construct a project to satisfy the project assessments. The District’s membership dues and study assessments have been and will continue to be paid on an annual basis. Therefore, authority is requested to amend an Agreement between the Metropolitan Water Reclamation District of Greater Chicago and the DuPage River Workgroup.
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 February 4, 2021