TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Award of Contract for the 2025 Motor Fuel Purchase to Al Warren Oil Company Inc. in the Amount of $1,444,100.00
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BACKGROUND:
The City of Joliet purchases approximately 350,000 gallons of Unleaded Gasoline and approximately 175,000 gallons of Diesel (40,000 gallons of Grade #1 and 135,000 of Grade #2) annually. A request for bids for the purchase of fuel was publicly posted on the City's website and several local suppliers were advised directly of the opportunity.
The Public Service Committee will review this matter.
CONCLUSION:
On Tuesday, December 3, 2024, at 9:00 A.M., four (4) sealed bids were received. Bids were opened and publicly read aloud by the City Clerk. The bid summary for fixed pricing (FP) for unleaded gasoline and diesel fuel for 2024 is as follows:
Prices were also received for fuel markups based on the industry-accepted index, the OPIS (Oil Price Information Sheet) to reflect the Low Side Posted Price as of November 28, 2024.
It is recommended that a fixed price contract be utilized by the City due to fluctuating prices in the market and that the benefits of having a fixed price contract outweigh the risk of using a floating price for fuel at this time. The total cost for awarding the contract for fuel purchase to Al Warren Oil Company Inc. based on utilizing fixed pricing is estimated to be $899,850.00 for unleaded fuel and $544,250.00 for diesel fuel in 2025.
Funds will be available in the Fleet Services General Fund for Unleaded Fuel (Org 01016000, Object 536260, $899,850.00) and for Diesel Fuel (Org 01016000, Object 536261, $544,250.00). Based upon usage a budget amendment may be needed in the future.
RECOMMENDATION:
recommendation
Based upon the above, it is recommended that the Mayor and City Council take the following actions:
1. Approve the purchase of approximately 350,000 gallons of unleaded fuel for $2.5710 per gallon from Al Warren Oil...
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