Submitted By
John P. Wielebnicki, Public Works Director
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving a Revised Intergovernmental Agreement between the Village of Oak Park and the Oak Park Township for the Purchasing of Fuel at the Village’s Fueling Facility and Authorizing its Execution
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Overview
Overview
On September 4, 2018, the Village entered into an Intergovernmental Agreement (IGA) with the Oak Park Township for the purchase of fuel at the Village’s fueling facility. Prior to that time, the Township purchased fuel at retail locations. Since entering into this IGA the Village has been working with other taxing bodies on a Fueling IGA. The IGA has been revised after discussion with other taxing bodies and it would be appropriate to provide the Township the opportunity to enter into the revised IGA.
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Recommendation
Recommendation
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Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
Per the new terms of the IGA, the Township would reimburse the Village monthly for fuel used at the market rate the Village pays per gallon, plus applicable taxes. In addition, the Township will pay the Village $0.21 (twenty one cents) per gallon for the Village’s administrative and maintenance costs for supplying fuel.
Background
The Village maintains a fueling facility at the Public Works Center. Fuel includes gasoline and diesel. Several Oak Park taxing bodies currently utilize the Village’s fuel facility to take advantage of the combined purchasing power for this purchase.
In 2018, the Village entered into an IGA with the Township for fueling at the Public Works Center. The Township was the first agency to enter into an IGA with the Village for fuel. The current IGA with the Township includes a section on Capital Improvements whereby the Village and Township would pay for Capital Improvements to the fueling facility based on their share of use as determined by the number of vehicles each agency has fueling at the facility.
The IGA’s with other taxing bodies have removed this section of the IGA. In lieu of this section, Capital Improvements fees have been added to the price per gallon along with the Village’s administrative and maintenance costs. This fee went from $0.10 per gallon to $0.21 per gallon. This revision will benefit all parties since there will no longer be an unknown on what the cost of Capital Improvements shares are to be.
Alternatives
The Board can delay action to gain additional information.
Previous Board Action
The Board approved the first IGA with the Oak Park Township for fueling on September 4, 2018. On May 20, 2019 the Village Board approved this same IGA with the Park District of Oak Park and the Oak Park Library.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
There are other taxing bodies that fuel at the Village’s fueling facility. IGA’s for those users will be prepared and brought forward to the Village Board for consideration.
Intergovernmental Cooperation Opportunities
This is an excellent example of local taxing bodies utilizing their combined purchasing power to reduce overall costs.