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TO: Mayor John Laesch
FROM: Derrick Winston, Director of Public Facilities
DATE: October 3, 2025
SUBJECT:
A resolution approving Petroleum Traders Inc., Mansfield Oil Company, and Al Warren Oil Company for the purchase of motor fuel for the City fleet and backup generators.
PURPOSE:
To obtain authorization to procure gasoline and diesel fuel for the City of Aurora's motorized fleet and backup generators.
BACKGROUND:
The City of Aurora requires gasoline and diesel fuel for daily operations. Unleaded and diesel fuels procured through the Equipment Services Fund for the City's fleet are stored at and dispensed from multiple sites. All fuels dispensed from these sites are charged back internally to the using divisions. The City also has several emergency backup generators that operate independent of utilities and supply backup power to critical facilities such as the Aurora Police Headquarters and Fire stations.
The City currently procures motor fuel through the Kane County contract which includes the Kane County Sheriff's Office, Department of Transportation, Forest Preserve, and the City of Aurora. The current contract is in the final year of extension and expires November 30, 2025.
To establish a successor contract, Kane County advertised Bid 25-026 "Gasoline and Diesel Fuel" and received bids from four vendors: Petroleum Traders Inc., Mansfield Oil Company, Al Warren Oil Company Inc., and J.T. Barrier LLC (bid proposals attached). Bids were based on the low rack pricing from the Oil Price Information Service (OPIS) index for Chicago, IL on July 25, 2025, plus vendor markup. Vendor markup is based primarily on freight and delivery quantity. Quantities of 7000-10,000 gallons are classified as bulk tank deliveries, while smaller quantities of 200-5,000 gallons are classified as wagon deliveries.
To simplify logistics and streamline their procurement process, the Kane County Purchasing Department recommended that the board vote to award the successor fuel purchase contract to the two lowest, responsive bidding vendors, for all products combined. Petroleum Traders Inc. was recommended to supply diesel fuel products and Mansfield Oil Company was recommended to supply unleaded fuel products (procurement synopsis attached).
DISCUSSION:
Petroleum Traders Inc. currently supplies the City's tank loads of all fuel types and the City has been pleased with their products and services. Mansfield Oil Company has provided fuel for the City in the past with positive results. Al Warren Oil Company currently supplies the City's wagon loads of all fuel types and the City is pleased with their products and services as well. The City concurs with the County recommendation of award by product type for tank loads; however, it is fiscally advantageous for the City to source wagon loads of all products from Al Warren Oil Co.
The contract is for a one (1) year term, to commence on December 1, 2025, with two (2), one (1) year renewal options.
$2,995,400.00 is requested in the 2026 budget to be allocated in multiple accounts for the purpose of procuring motor fuel (account table attached). Following internal chargebacks, the total expenditure for fuel is projected to be $1,653,100.00.
Petroleum Traders, Mansfield Oil Company, and Al Warren Oil Company, Inc. are not indebted to the City.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
I recommend that the City Council adopts a resolution approving Petroleum Traders Inc., Mansfield Oil Company, and Al Warren Oil Company for the purchase of motor fuel for the City fleet and backup generators for a one (1) year term, to commence on December 1, 2025 with two (2), one (1) year renewal options.
cc: Infrastructure & Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution approving Petroleum Traders Inc., Mansfield Oil Company, and Al Warren Oil Company for the purchase of motor fuel for the City fleet and backup generators.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora requires gasoline and diesel fuel for daily operations. Unleaded and diesel fuels for the City's fleet are stored at and dispensed from multiple sites. The City also has several emergency backup generators that operate independent of utilities and supply backup power to critical facilities; and
WHEREAS, the City currently procures motor fuel through the Kane County contract which includes the Kane County Sheriff's Office, Department of Transportation, Forest Preserve, and the City of Aurora. The current contract is in the final year of extension and expires November 30, 2025; and
WHEREAS, To establish a successor contract, Kane County advertised Bid 25-026 "Gasoline and Diesel Fuel" and received bids from four vendors: Petroleum Traders Inc., Mansfield Oil Company, Al Warren Oil Company Inc., and J.T. Barrier LLC (bid proposals attached). Bids were based on the low rack pricing from the Oil Price Information Service (OPIS) index for Chicago, IL on July 25, 2025, plus vendor markup; and
WHEREAS, To simplify logistics and streamline their procurement process, the Kane County Purchasing Department recommended that the board vote to award the successor fuel purchase contract to the two lowest, responsive bidding vendors, for all products combined. Petroleum Traders Inc. was recommended to supply diesel fuel products and Mansfield Oil Company was recommended to supply unleaded fuel products (procurement synopsis attached); and
WHEREAS, The City concurs with the County recommendation of award by product type for tank loads; however, it is fiscally advantageous for the City to source wagon loads of all products from Al Warren Oil Co.; and
WHEREAS, the contract is for a one (1) year term to commence on December 1, 2025, with two (2), one (1) year renewal options; and
WHEREAS, $2,995,400.00 is requested in the 2026 budget to be allocated in multiple accounts for the purpose of procuring motor fuel (account table attached). Following internal chargebacks, the total expenditure for fuel is projected to be $1,653,100.00; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: approving Petroleum Traders Inc., Mansfield Oil Company, and Al Warren Oil Company for the purchase of motor fuel for the City fleet and backup generators for a one (1) year term, to commence on December 1, 2025 with two (2), one (1) year renewal options, which is hereto and made a part of and that the Purchasing Director is hereby authorized to issue the necessary purchase orders and is further authorized to implement the contract extensions with no additional Council approvals.