Title
Requisition No. REQ-0000030
Fuel Maintenance Services
O&M
Body
Agenda of: July 23, 2025
Item No.: 2025-209
Amount: $2,997,490.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 26, 2025
RE: Requisition No. REQ-0000030
Fuel Maintenance Services
Vendor: Technical Service Professionals, LLC DBA TSP Environmental
Status: New Contract/PO
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 Requisition No. REQ-0000030, “Fuel Maintenance Services” with Technical Service Professionals, LLC DBA TSP Environmental, at a cost not to exceed $1,750,540.00 for a duration of three (3) years with two (2) one (1) year renewal options for $619,200.00 and $627,750.00, respectively, for a total contract amount of $2,997,490.00; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA operates six (6) vehicle fueling stations with 6,000-gallon double-contained underground tanks for diesel and unleaded gasoline, and 95 diesel storage tanks ranging in size from 25 gallons to 15,000 gallons for standby generators. Strict safety and regulatory compliance require regular preventative maintenance and timely repairs to prevent leaks, ensure environmental safety, and comply with industry and regulatory standards.
JUSTIFICATION
Regular inspections and preventative maintenance of fueling infrastructure are critical to ensure reliable operation, compliance and safety, operational efficiency, risk management, training and certification, and cost effectiveness.
• Compliance and Safety: Regular inspections, reporting, certifications, and maintenance ensure adherence to federal, state, and local regulations, reducing legal risks and ensuring safety for GLWA infrastructure, personnel, and our member partners.
• Operational Efficiency: GLWA’s existing fuel storage and dispensing systems are equipped with advanced technology such as automatic tank gauging and leak detection systems. Routine maintenance by a consultant specializing in fuel and tank maintenance services enhances the operational efficiency of these systems, ensuring accurate inventory tracking, and minimizing downtime.
• Risk Management: The consequences of fuel leaks or system failures can be significant, both financially and environmentally, for GLWA and our partner communities. This contract includes regular inspections and as-needed maintenance and repairs, which allows for prompt identification and response to any issues, thereby reducing the risk of costly remediation and potential harm to the community and environment.
• Training and Certification: Ensuring that GLWA’s personnel are properly trained and certified in operational procedures is paramount for safe fuel dispensing. The contract provides necessary training programs, ensuring our employees are well-prepared to operate within the regulatory framework and handle emergency situations effectively.
• Cost-Effectiveness: By outsourcing these specialized services, GLWA can leverage the expertise and resources of a dedicated contractor, ultimately leading to more cost-effective operations. Regular maintenance is typically less expensive than emergency repairs or fines associated with non-compliance.
FINANCIAL PLAN IMPACT
Summary: The proposed contract with TSP Environmental, encompasses Operations & Maintenance (O&M) expense only. The scope of the new contract has changed from maintenance only to maintenance and repairs. This proposed amended contract exceeds the current financial plan. Should the contract be used to its maximum value, a budget amendment would be required. This amendment would first be offset by other positive variances, then from the unallocated reserve.
Funding Source: Operations & Maintenance (5910)
Cost Center: Fleet Operations (882422)
Expense Type: Contractual Operating Services
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2021 Budget Amendment $ 234,054.96
FY 2022 Budget Amendment 204,865.14
FY 2023 Budget Amendment 23,810.00
FY 2024 Budget Amendment 178,017.86
FY 2025 Budget 233,000.00
FY 2026 Budget 174,750.00
FY 2027 Financial Plan 233,000.00
FY 2028 Financial Plan 233,000.00
FY 2029 Financial Plan 233,000.00
FY 2030 Financial Plan 213,583.00
Financial Plan Forecast 1,339,750.00
Proposed Contract Amount $ 2,997,490.00
Variance (positive/ (negative)) ($ 1,657,740.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 9, 2025.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.