Title
Contract No. 2402708
Gasoline and Diesel Fuel for GLWA
O&M
Body
Agenda of: August 28, 2024
Item No.: 2024-250
Amount: $2,300,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: July 31, 2024
RE: Contract No. 2402708
Gasoline and Diesel Fuel for GLWA
Vendor: RKA Petroleum, Inc.
MOTION
Upon recommendation of Cheryl Porter, Chief Operating Officer - Water and Field Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2402708, “Gasoline and Diesel Fuel for GLWA” with RKA Petroleum, Inc., at a cost not to exceed $2,300,000.00 for a duration of 487 days and the option to renew for an additional 730 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA purchases fuel for GLWA gas and diesel powered equipment such as backup generators, vehicles, heavy machinery, and other such equipment. This fuel allows GLWA to support day to day operations organization wide.
JUSTIFICATION
In order to service our member partner communities and continue to provide water services and wastewater services, GLWA needs a vendor capable of supplying both gasoline and diesel fuel in Southeast Michigan. The Michigan Intergovernmental Trade Network (MITN) cooperative bid is hosted and facilitated by the City of Sterling Heights. The cooperative agreement supports the purchase of gasoline and diesel fuel that includes 20 member communities in the Macomb, Oakland, and Wayne County region. The MITN program for gas and diesel fuel procurement provides a streamlined process, competitive pricing, and compliance assurances. MITN fosters efficient vendor management, supports local economies, and provides tools for risk mitigation and flexible ordering. This decision ensures cost savings, regulatory compliance, and strong supplier relationships, aligning with our commitment to operational excellence and responsible resource management.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with RKA Petroleum Companies, Inc. encompasses Operations & Maintenance expense only. Sufficient funds will be provided in the Operations & Maintenance (O&M) financial plan for this contract related to Operating Supplies - Fuel.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Fleet Operations 882422
Expense Type(s): Operating Supplies - Fuel (621500)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2025 Budget (Prorated) $ 525,000.00
FY 2026 Financial Plan 700,000.00
FY 2027 Financial Plan 700,000.00
FY 2028 Financial Plan (Prorated) 375,000.00
Financial Plan Forecast $ 2,300,000.00
Proposed Contract Amount 2,300,000.00
Variance (positive/ (negative)) $ 0.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on August 14, 2024. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.