Board Resolution 2017-11-17

WHEREAS, section 7-198 of the Illinois Pension Code authorizes the Board of Trustees of the Illinois Municipal Retirement Fund to establish rules necessary or desirable for the efficient administration of the Fund; and

WHEREAS, section 7-186 of the Pension Code provides that the Board of Trustees will appoint an executive director to “manage the office and carry out the technical administrative duties of the fund;” and

WHEREAS, the Board of Trustees has adopted Resolution No. 2013-05-12, which establishes rules for purchasing goods and services necessary to administer the IMRF plan; and

WHEREAS, the Board of Trustees, in its purchasing rules, has authorized the executive director to approve purchases of up to $25,000 without Board action; and

WHEREAS, the Board of Trustees has approved a project to replace the current IMRF pension administration system (the Horizon Project) at a total cost of $37,878,908; and

WHEREAS, the Board of Trustees has approved a contract with Morneau Shepell to implement the Horizon Project; and

WHEREAS, the contract for the Horizon Project includes a change order process (Section 11.1) for increasing or decreasing the scope of the Project, including increasing or decreasing the associated Project expenses; and

WHEREAS, the Horizon Project is a time sensitive endeavor requiring flexibility on the part of both IMRF and Morneau Shepell and the ability to quickly handle certain unforeseen project changes; and

WHEREAS, delays in change order approval can result in significant timeline delays for the Horizon Project; and

WHEREAS, the Board of Trustees desires to give the executive director, with the advice and consent of the Horizon Executive Steering Committee, the authority to approve change orders for the Horizon Project, under the following circumstances and in the following amounts:

• Change orders that result from a change in the scope of the project (work not identified in the RFP and original contract, but required for the success of the Horizon Project) to a maximum of $100,000, limited to one such change order between any two regularly scheduled meetings of the Board;
• Change orders required during Project Phases 1 and 2 (for which the contract provides a time and materials budget), for additional hours over the total hours estimated for the Phase, to a maximum 5% change in the cost of the Phase budget, limited to one such change order between any two regularly scheduled meetings of the Board; and

WHEREAS, this exception to the Board’s purchasing rules is limited to the Horizon Project contract with Morneau Shepell, dated April 7, 2017.

NOW THEREFORE BE IT RESOLVED that the Board of Trustees of the Illinois Municipal Retirement Fund does hereby grant to its executive director the authority to approve change orders that result from a change in the scope of the project, to a maximum of $100,000, and change orders for additional hours for Phases 1 and 2 when projected hours required for the Phase exceed the total hours projected for the Phase, to a maximum change in the cost of the Phase budget of 5%, each limited to one such change order between any two regularly scheduled meetings of the Board. Change orders in excess of these limits must be approved by the IMRF Board of Trustees.

BE IT FURTHER RESOLVED that the executive director shall report all change orders he authorizes to the Board of Trustees.