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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 ________________
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.
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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.