Title
Proposed Amendment No. 1
Contract No. 2201558
Gasoline and Diesel Fuel Deliveries
O&M
Body
Agenda of: September 27, 2023
Item No.: 2023-325
Amount: Original Contract $720,000.00
Proposed Amendment No. 1 720,000.00
Total Revised Contract $1,440,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: September 1, 2023
RE: Proposed Amendment No. 1
Contract No. 2201558
Gasoline and Diesel Fuel Deliveries
Vendor: Crystal Flash, 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. 2201558, Proposed Amendment No. 1, “Gasoline and Diesel Fuel Deliveries” with Crystal Flash, with an increased cost of $720,000.00 for a total cost not to exceed $1,440,000.00, and an increased duration of one (1) year for a total contract duration of two (2) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
This agreement was based on the MiDeal State of Michigan (Cooperative Agreement) Contract No. 071B7700193 for Gasoline and Diesel Fuel Delivery Service for the Lower Peninsula and Eastern Upper Peninsula. Starting October 1, 2022, GLWA entered into an agreement under the above listed MiDeal contract, with an initial budget of $720,000.00 for Crystal Flash (vendor) to provide fuel delivery service for one (1) year. This agreement also had provisions for a second-year renewal option.
JUSTIFICATION
GLWA continues to have daily fueling needs. In order to support our member partner communities and continue to provide water services, we will need a vendor capable of supplying both gasoline and diesel fuel. Crystal Flash has proven to be capable of reacting to the operational demands of our unique business, including emergency situations.
PROJECT MANAGEMENT STATUS
Original Contract Time 1 year (10/01/2022 - 09/30/2023)
Proposed Amendment No. 1 1 year (10/01/2023 - 09/30/2024)
New Contract Time 2 years (10/01/2022 - 09/30/2024)
PROJECT ESTIMATE
Original Contract Price $720,000.00
Proposed Amendment No. 1 720,000.00
New Contract Total $1,440,000.00
FINANCIAL PLAN IMPACT
Summary: The proposed contract with Crystal Flash, Inc. encompasses Operations & Maintenance expense only. The FY 2024 budget and five-year financial plan was based on the previous contract period. The value of the contract exceeds the current financial plan in total. Potential positive variances of other contracts as well as the use of this contract may vary from year to year. The financial plan will be adjusted accordingly during the FY 2025 budget preparation to align with the proposed contract amount. 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………….....Centralized Services cost center 882422
Expense Type(s): Operating Supplies - Fuel (621500)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2023 Budget (prorated) $525,000.00
FY 2024 Budget 650,000.00
FY 2025 Financial Plan (prorated) 188,000.00
Financial Plan Forecast $1,363,000.00
Proposed Contract Amount $1,440,000.00
Variance (positive/ (negative)) $ (77,000.00)
COMMITTEE REVIEW
This item is being presented directly to the GLWA Board of Directors.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.