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CITY OF WEST CHICAGO
INFRASTRUCTURE COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
7C.
COMMITTEE AGENDA DATE: April 4, 2024
COUNCIL AGENDA DATE: April 15, 2024
AGENDA ITEM NUMBER:
Procurement of Unleaded and Diesel Fuel from Al Warren Oil
Through the DuPage County Joint Purchasing Program
STAFF REVIEW: Mehul T. Patel, P.E., CFM, Director of Public Works SIGNATURE
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 is 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 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. Staff has recently been advised that LA Warren Oil has agreed to
extend the portion of the contract for those associated users, including West Chicago, for the first extension for the
purchase and delivery of fuel for the period of April 1, 2024, through March 31, 2025, at the 2023 prices. The
following table represents City of West Chicago quantities and pricing.
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 2023, based on the
average of the past four years is estimated to be approximately 60,100 gallons (42,200 gallons for unleaded and
17,900 gallons for diesel) for an estimated cost of approximately $170,500.00. This cost is estimated based on the
past four year average price per gallon of $2.73 for unleaded and $2.95 for diesel. In addition, the Fire Protection
District and School District 94 use the City’s fueling station and are estimated to use approximately 17,000 gallons
(7,100 gallons of unleaded and 10,000 gallons for diesel) of fuel for an estimated cost of $48,800.00. Each District
reimburses the City for the portion of fuel it uses. In FY2023, the City paid $281,983.73 for fuel of which,
$204,079.14 was for City fuel and $77,904.59 was for other Districts. It is estimated that the combined fuel cost for
Fiscal Year 2024, using the bid prices including delivery cost mark-up for all users will be approximately
$262,000.00. There is currently $242,000.00 budgeted in Fiscal Year 2024 for the City’s fuel needs across multiple
accounts.
The table below shows an illustration of average use of fuel over the last four years by entity along with estimated

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CITY OF WEST CHICAGO
cost of the fuel at an average price for the past four years ($2.73 for unleaded and $2.95 for diesel), highest price
paid in the past four years ($3.51 for unleaded and $4.01 for diesel), most recent fuel delivery price ($3.19 for
unleaded and $3.38 for diesel) and a hypothetical price for 2024 using average statewide price on March 20, 2024
($3.77 for unleaded and $4.06 for diesel). At this time, staff is unsure where the fuel prices will be for the remainder
of the FY2024.
Avg.
7 Avg. Price - ‘ . Most Recent Hypothetical
. Consumption - Highest Price - ‘ . f .
Entity Past 4 years Past 4 years Past 4 years ($) Delivery Price | Delivery Price -
(S) Feb 2024 ($) IL Avg. ($)
(Gals)
City - Unleaded 42,198.23 $115,063.32 $148,115.77 $134,840.21 $159,087.31
School/FPD - Unleaded 7,077.35 $19,298.05 $24,841.50 $22,614.96 $26,681.61
City - Diesel 17,930.30 $52,840.45 $71,900.50 $60,640.27 $72,797.02
School/FPD - Diesel 10,002.68 $29,477.80 $40,110.73 $33,829.05 $40,610.86
Estimated delivery markup $2,608.74 $2,608.74 $2,608.74 $2,608.74
Total $219,288.36 $287,577.24 $254,533.24 $301,785.54
Total (includes 3%
escalation)
$225,867.01 $296,204.56 $262,169.23 $310,839.10
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, 2024, thru March 31, 2025.
ACTIONS PROPOSED:
Authorize the purchase and delivery of Unleaded Gasoline and Diesel Fuel, from April 1, 2024, thru March 31,
2025, from Al Warren Oil, using pricing obtained through the DuPage County Joint Purchasing Program, for an
amount not to exceed $262,000.00.
COMMITTEE RECOMMENDATION:
The Infrastructure Committee voted 5-0 for approval.