Title
Proposed Amendment No. 5
Contract No. 1904562/SCN-0000082
GLWA Fuel Maintenance
O&M
Body
Agenda of: July 23, 2025
Item No.: 2025-208
Amount: Original Contract $ 466,560.00
Amendment No. 1 233,280.00
Amendment No. 2 233,280.00
Amendment No. 3 0.00
Amendment No. 4 116,640.00
Proposed Amendment No. 5 140,000.00
Total Contract Amount $1,189,760.00
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: Proposed Amendment No. 5
Contract No. 1904562/SCN-0000082
GLWA Fuel Maintenance
Vendor: Phoenix Environmental, Inc.
Status: Amendment/Change Order
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.1904562/SCN-0000082, Proposed Amendment No. 5 “GLWA Fuel Maintenance” with Phoenix Environmental, Inc., at an increased cost of $140,000.00 for a total cost not to exceed $1,189,760.00 and an increased duration of 183 days for a total duration of 2,009 days; 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) fueling stations, each equipped with a 6,000-gallon, double-contained underground storage tank for diesel and unleaded gasoline. Given the regulatory environment surrounding fuel storage and distribution, our facilities must adhere to strict safety and compliance protocols. Regular maintenance and timely repairs are crucial to prevent potential leaks, ensure environmental safety, and comply with industry regulations.
JUSTIFICATION
1. Compliance and Safety: The tasks outlined in the contract-inspections, regulatory reporting, operational certifications, and maintenance-are fundamental to our adherence to federal, state, and local regulations. By engaging a qualified contractor, we ensure that all systems are regularly inspected and maintained, mitigating the risk of non-compliance and potential legal repercussions.
2. 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 professionals enhances the operational efficiency of these systems, ensuring accurate inventory tracking, and minimizing downtime.
3. Risk Management: The consequences of fuel leaks or system failures can be significant, both financially and environmentally. This contract includes as-needed maintenance and repair, which allows for prompt response to any issues, thereby reducing the risk of costly remediation and potential harm to the community and environment.
4. 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.
5. 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.
This amendment is needed to continue with the necessary services mentioned above while the new proposed contract, which is also on this agenda for July, is processed.
PROJECT MANAGEMENT STATUS
Original Contract Time 730 days (07/01/2020 - 06/30/2022)
Amendment No. 1 365 days (07/01/2022 - 06/30/2023)
Amendment No. 2 366 days (07/01/2023 - 06/30/2024)
Amendment No. 3 184 days (04/01/2024 - 12/31/2024)
Amendment No. 4 181 days (01/01/2025 - 06/30/2025)
Proposed Amendment No. 5 183 days (07/01/2025 - 12/31/2025)
New Contract Time 2,009 days (07/01/2020 - 12/31/2025)
PROJECT ESTIMATE
Original Contract Price $ 466,560.00
Amendment No. 1 233,280.00
Amendment No. 2 233,280.00
Amendment No. 3 0.00
Amendment No. 4 116,640.00
Proposed Amendment No. 5 140,000.00
New Contract Total $1,189,760.00
FINANCIAL PLAN IMPACT
Summary: The proposed amendment with Phoenix Environmental Inc. encompasses Operations & Maintenance (O&M) expense only. 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 Budget (5910)
Cost Center(s): Fleet Operations (882422)
Expense Type(s): Contractual Operating Services
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2021 Amended Budget $ 234,054.96
FY 2022 Amended Budget 204,865.14
FY 2023 Amended Budget 23,810.00
FY 2024 Amended Budget 178,017.86
FY 2025 Budget 233,000.00
FY 2026 Budget (Prorated) 58,250.00
Financial Plan Forecast $ 931,997.96
New Contract Total $ 1,189,760.00
Variance (positive/ (negative)) ($ 257,762.04)
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.