TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 23, 2025
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authority to increase purchase order for 101 Erie Hotel LLC for maintenance and operation of the common areas of the 101-111 East Erie Street Building for the period of January 1, 2024 through December 31, 2024 in an amount not to exceed $57,346.50, from an amount of $71,053.50, to an amount not to exceed $128,400.00, Account 101-15000-612390, Purchase Order 3128849
Body
Dear Sir:
At the Board meeting of March 7, 2024, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order to 101 Erie Hotel LLC for maintenance and operation of the common areas of the 101-111 East Erie Street Building for the period of January 1, 2024 through December 31, 2024, in an amount not to exceed $71,053.50.
There are no prior change orders for this contract.
Original Contract Amount $71,053.50
Date of Board Approval 3/7/2024
Cumulative Change Order $0.00
% Change of Original Contract Value 0.00%
Current Contract Value $71,053.50
Requested Increase or Decrease $57,346.50
New Contract Value $128,400.00
% Change of Current Contract Value 80.71%
Total % Change of Original Contract Value 80.71%
The reason for this increase is to fund the District’s share of prior year common building expenses for 2021, 2022, 2023, and 2024 in the amounts not to exceed $20,000.00, $20,000.00, $38,300.00, and $50,100.00 respectively. Shared expenses are for services such as snow and ice removal, window cleaning, truck dock and stairwell maintenance, scavenger service, pest control and repair costs at a rate of 29.65%. The District’s share of the total common building expenses for the total parking area is 41.20%. The amended deed and declaration requires annual payment by the District to 101 Erie Hotel LLC for these prorated expenses. The District made multiple attempts to obtain invoices for each year but was unsuccessful.
This change order is in compliance with the Illinois Criminal Code since the circumstances were unforeseen at the time the original contract was signed, and it 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 for 101 Erie Hotel LLC for maintenance and operation of the common areas of the 101-111 East Erie Street Building for the period of January 1, 2021 through December 31, 2024 in an amount not to exceed $57,346.50 (80.71% of the current contract value), from an amount of $71,053.50, to an amount not to exceed $128,400.00.
Funds are available in Account 101-15000-612390.
Requested, Shellie A. Riedle, Administrative Services Officer, KL:BA
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 January 23, 2025