Aurora, Illinois

File #: 20-0663    Version: 1 Name:
Type: Resolution Status: Passed
File created: 10/16/2020 In control: City Council
On agenda: 11/24/2020 Final action: 11/24/2020
Title: A Resolution to approve Petroleum Traders Inc. and Blu Petroleum LLC as the vendors for the purchase of unleaded and diesel motor fuel for the City of Aurora fleet and backup generators for an additional one (1) year, in an amount not to exceed $1,153,500.00.
Attachments: 1. 45-019 Option Year Award Letter, 2. 45-019 Notice of Award, 3. Table of Fuel Accounts_2021, 4. (Corrected)2020 Bid 45-019 Gasoline - Markup - Same OPIS, 5. R20-043, 6. R19-406

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TO:                     Mayor Richard C. Irvin

 

FROM:                     Derrick Winston, Asst. Superintendent Fleet & Facilities Maintenance

 

DATE:                     October 16, 2020

 

SUBJECT:

Contract extension for the purchase of unleaded and diesel motor fuel

 

PURPOSE:

To obtain approval to extend the contract to purchase motor fuel for the City of Aurora motorized fleet and backup generators through the Kane County solicitation for an additional one (1) year.

 

BACKGROUND:

The City of Aurora has participated in the Kane County solicitation for the purchase of gasoline and diesel products for the last 20 years.  The Kane County Sheriff's Office, Department of Transportation, Forest Preserve and the City of Aurora participate in this bid. 

 

On November 30, 2019, the Kane County Board, per Resolution 19-418, awarded a one (1) year contract with two (2) optional, one (1) year extensions for the purchase and delivery of unleaded and diesel motor fuels to Petroleum Traders Inc., of Fort Wayne, IN for bulk tank loads and Blu Petroleum, LLC of Mundelein, IL for small quantity wagon loads.  The contract commenced on December 1, 2019 and expires November 30th, 2020.  The Aurora City Council approved the procurement of motor fuel using this contract, per Resolutions R19-406 on December 10, 2019 and R20-043 on February 25, 2020.

 

On October 12, 2020, The Kane County Board, per Resolution 20-315, awarded the first of two (2) possible one (1) year contract extensions to both Petroleum Traders Inc. and Blu Petroleum LLC, to commence on December 1, 2020 and expire November 30, 2021.

 

DISCUSSION:

Given that Kane County has extended the contract for an additional one (1) year, and the two vendors have supplied quality products and service, I am requesting approval to purchase unleaded and diesel motor fuels for the City of Aurora Fleet and backup generators from both Petroleum Traders Inc. and Blue Petroleum, LLC., for an additional one (1) year.

In the anticipated 2021 budget, $2,096,100.00 will be allocated in multiple xxx-xxxx-xxx-62.40 accounts (chart attached) for the purchase of unleaded and diesel fuels.  Based on historical usage, $942,600.00 is projected to be charged back to internal divisions through the Equipment Services Fund (ESF).  After deducting the charge back from the budgeted amount, the total projected cost for fuel purchases is $1,153,500.00.

 

Neither Petroleum Traders Inc., nor Blu Petroleum LLC is indebted to the City.

 

 

IMPACT STATEMENT:

N/A

 

RECOMMENDATIONS:

That the City Council adopts a resolution approving Petroleum Traders Inc. for the purchase of tank loads of unleaded and diesel fuels and Blu Petroleum LLC for the purchase of wagon loads of unleaded and diesel fuels for the City of Aurora fleet and backup generators for an additional one (1) year, in an amount not to exceed $1,153,500.00.

 

 

cc:                     Infrastructure & Technology Committee

 

CITY OF AURORA, ILLINOIS

 

RESOLUTION NO. _________

DATE OF PASSAGE ________________

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A Resolution to approve Petroleum Traders Inc. and Blu Petroleum LLC as the vendors for the purchase of unleaded and diesel motor fuel for the City of Aurora fleet and backup generators for an additional one (1) year, in an amount not to exceed $1,153,500.00.

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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 has participated in the Kane County solicitation for the purchase of unleaded and diesel fuel products for the last 20 years; and

 

WHEREAS, on November 30, 2019, the Kane County Board, per Resolution 19-418, awarded a one (1) year contract with two (2) optional, one (1) year extensions for the purchase and delivery of unleaded and diesel motor fuels to Petroleum Traders Inc., of Fort Wayne, IN for bulk tank loads and Blu Petroleum, LLC of Mundelein, IL for small quantity wagon loads; and

 

WHEREAS, the contract commenced on December 1, 2019 and expires November 30th, 2020; and

 

WHEREAS, the Aurora City Council approved the procurement of motor fuel using this contract, per Resolutions R19-406 on December 10, 2019 and R20-043 on February 25, 2020; and 

 

WHEREAS, on October 12, 2020, The Kane County Board, per Resolution 20-315, awarded the first of two (2) possible one (1) year contract extensions to both Petroleum Traders Inc. and Blu Petroleum LLC., to commence on December 1, 2020 and expire November 30, 2021; and

 

WHEREAS, the two vendors have supplied quality products and service; and

 

WHEREAS, in the anticipated 2021 budget, $2,096,100.00 will be allocated in multiple xxx-xxxx-xxx-62.40 accounts for the purchase of unleaded and diesel fuels; and

 

WHERAS, $942,600.00 is projected to be charged back to internal divisions through the Equipment Services Fund (ESF).  After deducting the charge back from the budgeted amount, the total projected cost for fuel purchases is $1,153,500.00; and

 

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The approval of Petroleum Traders Inc. for the purchase of tank loads of unleaded and diesel fuels and Blu Petroleum LLC for the purchase of wagon loads of unleaded and diesel fuels for the City of Aurora, in an amount not to exceed $1,153,500.00 and the Purchasing Director is hereby authorized to issue the necessary purchase orders.