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CITY OF WEST CHICAGO
INFRASTRUCTURE COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER: 5A.
Procurement of Unleaded and Diesel Fuel from Gas Depot
through DuPage County Joint Purchasing Program COMMITTEE AGENDA DATE: April 7, 2022
COUNCIL AGENDA DATE: April 18, 2022
STAFF REVIEW: Mehul T. Patel, P.E., CFM, Director of Public Works ae i, oe
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.1.S. (Oil Price Information
Service), plus delivery charges, and applicable taxes. The only variable to the annual contract and bids are
delivery charges.
Prior to Fiscal Year 2015, the City had participated in the Suburban Purchasing Cooperative (SPC) Joint
Purchasing Program for fuel purchase. Since 2015, the City has participated 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. In 2021, DuPage County approved the second of three possible contract extensions with
Gas Depot for fuel purchase and delivery at the 2019 prices.
Staff has recently been advised that Gas Depot has agreed to extend the “Group 3 - DuPage County Entities”
portion of the contract for those associated users, including West Chicago, for the third and final year for the
purchase and delivery of fuel for the period of April 1, 2022, through March 31, 2023, at the 2019 prices. The
mark-up for fuel delivery on said Contract extension for the applicable Group 3 bid category will be the same (e.g.,
$0.009/gallon for unleaded fuel and $.0145/gallon for low sulfur diesel). Gas Depot has provided a confirmation
letter for the extension of pricing to the City (see attached).
Although fuel costs vary on date of delivery, the City’s annual fuel usage for Fiscal Year 2022, based on the
average of the past three years is estimated to be approximately 62,000 gallons (42,700 gallons for unleaded and
19,300 gallons for diesel) for an estimated cost of approximately $158,000.00. This cost is estimated based on the
past three year average price per gallon of $2.18 for unleaded and $2.19 for diesel. In addition, the Fire Protection
District and School District 94 use the City’s fueling station and are estimated to use approximately 20,500 gallons
(7,100 gallons of unleaded and 13,400 gallons for diesel) of fuel for an estimated cost of $52,000 . Each District
reimburses the City for the portion of fuel it uses. It is estimated that the combined fuel cost for Fiscal Year 2022,
including delivery cost mark-up and a three percent escalation factor, for all users will be approximately
$218,000.00. There is currently $178,600.00 budgeted in Fiscal Year 2022 for the City’s fuel needs across multiple
accounts.
The table below shows an illustration of average use of fuel over the last three years by entity along with estimated
cost of the fuel at an average price for the past three years ($2.18 for unleaded and $2.19 for diesel), highest price
aid in the past three years ($2.56 for unleaded and $2.53 for diesel), most recent fuel delivery price ($3.27 for

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CITY OF WEST CHICAGO
unleaded and $3.65 for diesel) and a hypothetical price for 2022 should the prices continue to rise ($4.00 for
unleaded and $4.50 for diesel). At this time, staff is unsure where the fuel prices will be for the remainder of the
FY2022.
: eaten t || eareteee Highest Price - Most Racer : Hypothetical
Entity Past 3 years Delivery Price Delivery Price
Past 3 ($) Past 3 years ($) ($) (s)
years(Gals)
City - Unleaded 42,732.63 $93,284.23 $109,400.01 $139,821.18 $170,930.53
School/FPD - Unleaded 7,124.87 $15,553.40 $18,240.40 $23,312.56 $28,499.47
City - Diesel 19,312.93 $42,234.17 $48,813.11 $70,488.34 $86,908.20
School/FPD - Diesel 13,338.57 $29,169.22 $33,713.00 $48,683.10 $60,023.55
Estimated delivery markup $922.16 $922.16 $922.16 $922.16
Total $181,163.18 $211,088.69 $283,227.35 $347,283.91
Total (includes 3%
escalation) $186,598.07 $217,421.35 $291,724.17 $357,702.43
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, 2022, thru March 31, 2023.
ACTIONS PROPOSED:
Authorize the purchase and delivery of Unleaded Gasoline and Diesel Fuel, from April 1, 2022, thru March 31,
2023, from Gas Depot, using pricing obtained through the DuPage County Joint Purchasing Program, for an
amount not to exceed $218,000.00.
COMMITTEE RECOMMENDATION:
The Infrastructure Committee voted 5-0 for approval.