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CITY OF WEST CHICAGO

                        INFRASTRUCTURE COMMITTEE
                        AGENDA ITEM SUMMARY
ITEM TITLE:
                                               AGENDA ITEM NUMBER:                                                          4-:'D-
Procurement of Unleaded and Diesel Fuel from Gas Depot
through DuPage County Joint Purchasing Program
                                                 COMMITTEE AGENDA DATE: March 5, 2020
                                                   COUNCIL AGENDA DATE:  April 6, 2020


STAFF REVIEW: Timothy R. Wilcox, Street Superintendent

APPROVED BY CITY ADMINISTRATOR: Michael L. Guttman
                                                   SIGNATURE _________ _

ITEM SUMMARY:

Annually, the City contracts for unleaded gas and diesel fuel deliveries. Costs are determined by using the
wholesale low rack gasoline and fuel price on the date of delivery as published by O.P.l.S. (Oil Price Information
Service), plus delivery charges, and applicable taxes.  The only variable to the annual contract and bids are
delivery charges.

In previous years, the City has participated in the Suburban Purchasing Cooperative (SPC) Joint Purchasing
Program and most recently in DuPage County's Joint Purchasing Program for fuel purchase and delivery.

In January 2019, DuPage County agreed to add the City of West Chicago and its estimated fuel quantities to the
bid proposal document under a bid category titled "Group 3 - DuPage County Entities". Gas Depot was the lowest
bidder with a delivery markup bid of $0.009/gallon for unleaded fuel and $.0145/gallon for low sulfur diesel. For
bidding purposes, the quantity of 80,000 gallons of unleaded gasoline and 50,000 gallons of low sulfur diesel was
identified for the City of West Chicago. The estimated annual delivery mark-up for that amount of fuel is
approximately $1,445.00 (see attached bid tab for additional information).

Staff has recently been advised that the DuPage County Board is slated to approve a Contract extension with Gas
Depot at the DuPage County Board Meeting on March 24, 2020, for the period April 1, 2020 to March 31, 2021.
The mark-up for fuel delivery on said Contract extension for the applicable Group 3 bid category will be the same
as 2019 (e.g., $0.009/gallon for unleaded fuel and $.0145/gallon for low sulfur diesel).

Although fuel costs vary on date of delivery, the City's annual fuel usage for 2020 is estimated to be approximately
72,000 gallons (unleaded and diesel combined) and estimated at approximately $164,000.00.  In addition, the Fire
Protection District and School District use the City's fueling station and used approximately 23,000 gallons of fuel
in 2019 (unleaded and diesel combined), estimated at approximately $54,000.00 for 2020. Each District
reimburses the City for the portion of fuel  it uses.   It is estimated that the combined fuel cost for the period April 1,
2020 to March 31, 2021, including delivery cost mark-up, for all users will be approximately $221,000.00. There is
currently $182,700.00 budgeted in FY 2020 for the City's fuel needs.

Staff seeks authorization to use the DuPage County Joint Purchasing Program to purchase, and have delivered,
unleaded gasoline and diesel fuel from Gas Depot for the period April 1, 2020 thru March 31, 2021.

ACTIONS PROPOSED:

Authorize the purchase and delivery of Unleaded Gasoline and Diesel Fuel, from April 1, 2020, thru March 31,
2021, from Gas Depot, using pricing obtained through the DuPage County Joint Purchasing Contract, for an
amount not to exceed $221, 100.00.