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A Resolution Approving a Purchase Price Agreement with Al Warren Oil Co. Inc. Through the Suburban Purchasing Cooperative (SPC) Contract In An Amount Not to Exceed $300,000.00, and Authorizing its Execution
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Introduction
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The Village maintains a fueling facility at the Public Works Center. Fuel types include gasoline, B20 Bio-Diesel, and diesel. The Village purchases fuel on an as-needed basis, reaching out to vendors for that day’s price and their availability to deliver during the Village’s Public Works hours of operation. Several Oak Park taxing bodies currently utilize the Village’s fuel facility to take advantage of the combined purchasing power for this purchase.
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Recommended Action
Adopt the Resolution.
Prior Board Action
This is a new item. There is no prior Board action associated with this item.
Background
The Village maintains a fueling facility at the Public Works Center. In addition to the convenience this provides to the Village’s fleet, several Oak Park taxing bodies currently utilize the Village’s fuel facility to take advantage of the combined purchasing power for the procurement of fuel. While the overall fuel budget is heavily weather dependent, the Village’s average fuel usage, calculated using the last five years’ totals, is approximately 129,000 gallons per year.
Historically, the Village procured fuel, in compliance with the Village’s purchasing policy, by attempting to collect three bids from qualified fuel suppliers at the time of purchase. These bids included the supplier’s price for that day and their availability to deliver during the Village’s Public Works hours of operation; however, getting qualified fuel supplier bids is becoming increasingly difficult. Al Warren has been the primary supplier of fuel to the Village over the last several years. They have routinely been the low bidder and have provided exceptional customer service.
Village staff propose utilizing the SPC Joint Purchasing Program for fuel procurement moving forward. Approximately 40 other municipalities utilize the SPC contract. While fuel prices can be unpredictable, it is estimated that the SPC contract price can be approximately .03-.04 cents per gallon higher than the Village is getting through multiple bids; however, purchasing fuel from a single contract would be more advantageous and convenient for the Village. In the past, the Village has participated in the SPC Joint Purchasing Program for vehicle purchases, including squad cars, pickup trucks, and electric vans.
The fuel purchase contract would benefit the Village by providing a single point of contact for ordering fuel, eliminating wait time for vendor responses, and locking in the markup on the fuel rack price. Included in this service is an automated monitoring/refueling system that, at a predetermined volume parameter, would initiate a delivery with the supplier, freeing staff from contacting the vendor whenever a fuel order is needed. This would also reduce paperwork and administrative time by consolidating fuel purchases into a single purchase order, rather than one per purchase. The Village averages approximately 20 fuel purchases annually.
Timing Considerations
Adoption of the Resolution at this time will allow for the purchase of fuel for 2026 from the SPC contract #230.
Budget Impact
The Fiscal Year 2026 budget provides funds for the purchase of fuel in the Public Works, Fuel Fund, GL # 1001.43900.101.560636.
The Fiscal Year 2026 budget for fuel is proposed to be $400,000.00.
Staffing Impact
This proposed item is a core service responsibility of the Public Works Department.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the resolution.
Advantages:
• The purchase price agreement associated with this resolution will lock in mark-ups on fuel purchases.
• Removing the cumbersome competitive pricing step associated with the current purchasing method simplifies administrative steps, thereby shortening the time between needing fuel and receiving fuel.
• The purchase price agreement allows the Village to work with one fuel supplier, therefore allowing for the addition of automation to the refueling process.
Disadvantages:
• The SPC requires members to use pre-approved vendors, moving forward this could limit the Village’s ability to shop around or negotiate custom terms.
Alternatives
The Village Board could delay action to gain additional information.
Advantages:
• The Village Board would receive the additional information requested in order to make a more informed decision.
Disadvantages:
• Village staff would be required to maintain their current approach to fuel purchasing until the resolution is approved. This would require the limited Fleet Division administrative staff to request multiple competitive bids at the time of purchase.
Anticipated Future Actions
It is anticipated that the Public Works Department will continue to request Village Board approval annually for fuel purchase through the Suburban Purchasing Cooperative (SPC) Joint Purchasing Program.
Prepared By: Erin Duffy, Deputy Public Works Director
Reviewed By: Rob Sproule, Public Works Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Purchase Price Agreement- 2026 Fuel Purchase
3. Supporting Documentation- Al Warren