===== PDF PAGE 34 =====
[Extraction: OCR (rendered-page OCR)]
CITY OF WEST CHICAGO
INFRASTRUCTURE COMMITTEE |
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER: 7. C.
Procurement of Unleaded and Diesel Fuel from Al Warren Oil
through DuPage County Joint Purchasing Program COMMITTEE AGENDA DATE: April 6, 2023
COUNCIL AGENDA DATE: April 17, 2023
STAFF REVIEW: Mehul T. Patel, P.E., CFM, Director of Public Works ae ie ae
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.I.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’. This contract was subsequently renewed for 2020, 2021, and 2022.
In January 2023, DuPage County agreed to add the City of West Chicago and its estimated fuel quantities to the
bid proposal document. The bid proposal was advertised on February 6, 2023, and bids were opened on February
28, 2023. Al Warren Oil was the lowest bidder. The following table represents City of West Chicago quantities and
ricing.
Bid Item | Bid Item Units | West Chicago Mark Up Unit Price ($) | Extended
No. Quantity (+)/Discount Price ($)
(-) cents/gal
2 Gasoline — 89 Octane GAL | 40,000 -0.0165 2.5805 $103,220.00
3 Ultra Low Sulfur Diesel 1 | GAL | 6,000 0.2000 3.9407 $23,644.20
4 Ultra Low Sulfur Diesel 2 | GAL | 24,000 0.0450 3.0180 $72,432.00
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 four years is estimated to be approximately 61,000 gallons (42,500 gallons for unleaded and
18,500 gallons for diesel) for an estimated cost of approximately $211,000.00. This cost is estimated based on the
past four year average price per gallon of $2.52 for unleaded and $2.65 for diesel. In addition, the Fire Protection
District and School District 94 use the City’s fueling station and are estimated to use approximately 21,000 gallons
(7,500 gallons of unleaded and 13,500 gallons for diesel) of fuel for an estimated cost of $54,500 . Each District
reimburses the City for the portion of fuel it uses. In FY2022, the City paid $307,317.86 for fuel of which,
$220,148.05 was for City fuel and $87,167.81 was for other Districts. It is estimated that the combined fuel cost for
Fiscal Year 2023, using the bid prices including delivery cost mark-up for all users will be approximately
$316,000.00. There is currently $219,900.00 budgeted in Fiscal Year 2023 for the City’s fuel needs across multiple
accounts.

===== PDF PAGE 35 =====
[Extraction: OCR (rendered-page OCR)]
CITY OF WEST CHICAGO
The table below shows an illustration of average use of fuel over the last four years by entity along with estimated
cost of the fuel at an average price for the past four years ($2.52 for unleaded and $2.65 for diesel), highest price
paid in the past four years ($3.51 for unleaded and $4.01 for diesel), most recent fuel delivery price ($2.95 for
unleaded and $3.82 for diesel) and a hypothetical price for 2023 using average statewide price on March 22, 2023
($3.70 for unleaded and $4.25 for diesel). At this time, staff is unsure where the fuel prices will be for the
remainder of the FY2023.
: sop hdeetion _ | Avg. Price - Highest Price - Most Recent Hypothetical
Entity Past 4 Past 4 years Past 4 years ($) Delivery Price Delivery Price -
years(Gals) (S) Feb 2023 ($) IL Avg. ($)
City - Unleaded 42425.10 $106,753.28 $148,962.34 $125,154.05 $156,972.87
School/FPD - Unleaded 7443.83 $18,730.72 $26,136.64 $21,959.28 $27,542.15
City - Diesel 18439.00 $48,799.85 $73,953.75 $70,436.98 $78,365.75
School/FPD - Diesel 13537.98 $35,829.01 $54,297.09 $51,715.06 $57,536.39
Estimated delivery markup $3,094.34 $3,094.34 $3,094.34 $3,094.34
Total $213,207.21 $306,444.16 $272,359.72 $323,511.51
Total (includes 3%
escalation)
$219,603.42 $315,637.48 $280,530.51 $333,216.85
Staff seeks authorization to use the DuPage County Joint Purchasing Program to purchase, and have delivered,
unleaded gasoline and diesel fuel from Al Warren Oil for the period April 1, 2023, thru March 31, 2024.
ACTIONS PROPOSED:
Authorize the purchase and delivery of Unleaded Gasoline and Diesel Fuel, from April 1, 2023, thru March 31,
2024, from Al Warren Oil, using pricing obtained through the DuPage County Joint Purchasing Program, for an
amount not to exceed $316,000.00.
COMMITTEE RECOMMENDATION:
The Infrastructure Committee voted 6-0 for approval.