TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 11, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order and renew the license agreement with PT Chicago, LLC for rooftop space at Presidential Towers located at 575 West Madison Street in Chicago, Illinois for TARP telemetry radio equipment for a three (3) year period from September 1, 2024, through August 31, 2027, in an amount not to exceed $213,712.00. Account 101-69000-612330, Requisition 1620790
Body
Dear Sir:
Authorization is requested to issue a purchase order and renew the license agreement with PT Chicago, LLC (“PT Chicago”) for rooftop space at Presidential Towers located at 575 West Madison Street in Chicago, Illinois for TARP telemetry radio equipment for a three (3) year period from September 1, 2024, through August 31, 2027.
PT Chicago, the sole source provider of this service, has submitted pricing for the license agreement. Inasmuch as PT Chicago is the only source for this service, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
The TARP telemetry radio equipment at Presidential Towers, including an antenna and TARP repeater station, is critical to the communication path between TARP control structures and the controlling operators. The District has rented this rooftop space from PT Chicago since 2000 under a series of three-year license agreements and extensions. The current license agreement, as extended, expires August 31, 2024. The Maintenance and Operations Department has requested that the District renew the license agreement for an additional three (3) year period.
The license agreement provides that the annual fee due shall be increased by 3% each year on the renewal anniversary date. Additionally, the District will pay for the associated operating electrical charges in the amount of $1,800.00 for the three (3) year term. Therefore, the estimated total cost to the District under renewed license agreement is as follows:
Time Period Annual License Fee Electrical Cost Subtotal
9/1/2024 - 12/31/2024 $22,854.00 $200.00 $23,054.00
1/1/2025 - 12/31/2025 $69,245.00 $600.00 $69,845.00
1/1/2026 - 12/31/2026 $71,323.00 $600.00 $71,923.00
1/1/2027 - 8/31/2027 $48,490.00 $400.00 $48,890.00
TOTAL $213,712.00
The Maintenance and Operations Department considers the cost of this agreement to be reasonable.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and renew the license agreement with PT Chicago, LLC for rooftop space at Presidential Towers located at 575 West Madison Street in Chicago, Illinois for TARP telemetry radio equipment for a three (3) year period from September 1, 2024, through August 31, 2027, in an amount not to exceed $213,712.00.
Funds for the 2024 expenditure in the amount of $23,054.00 are available in Account 101-69000-612330. The estimated expenditure for 2025 is $69,845.00; for 2026 is $71,923.00; and for 2027 is $48,890.00. Funds for the 2025, 2026 and 2027 expenditures are contingent upon the Board of Commissioners' approval of the District's budget for those years.
It is further requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Chairman of the Committee on Finance and the Clerk to execute any documentation necessary to renew the license agreement after it is approved by the General Counsel as to form and legality.
Requested, John P. Murray, Director of Maintenance and Operations; Susan T. Morakalis, General Counsel, JPM:STM:BJD:NOC:vp
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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 July 11, 2024