03-265 Resolution No. 03-265
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
BONCOSKY OIL COMPANY FOR OFFSITE FUELING FOR CITY OF ELGIN FLEET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that David M. Dorgan, City Manager, be and is hereby
authorized and directed to execute an agreement on behalf of the
City of Elgin with Boncosky Oil Company for offsite fueling for
City of Elgin fleet, a copy of which is attached hereto and made a
part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: October 8, 2003
Adopted: October 8, 2003
Omnibus Vote : Yeas : 6 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
CITY OF ELGIN
AGREEMENT FOR
RFP#03-092 for Offsite Fueling for City of Elgin Fleet
This Agreement is made and entered into this - day of A UGUST ,2003 by and between the City of
Elgin("the CITY"),a municipal corporation organized and existing under the laws of the State of Illinois, and
BOM CASK Y OIL COMP")NY ,incorporated in the state of I LLl NO/S and having a
principal place of business at 739 A1, STATE ST ELLIN,IL ("the CONTRACTOR").
ARTICLE I. DEFINITION. "THIS CONTRACT"as used herein shall mean this Agreement,the Request for
Proposals (RFP) including all documents referenced therein and the Contractor's Proposal response
(Proposal)thereto incorporated by reference herein and made a part hereof. The CONTRACTOR agrees to
provide the goods and/or services all in accordance with the RFP and CONTRACTOR=S Proposal. In the
event there is a conflict between this Agreement and the Proposal documents,the Proposal documents shall
supersede this Agreement.
ARTICLE II. DURATION. The CONTRACT shall commence on November 23,2003 and continue through
November 23, 2005, with an option by the City to renew for an additional year at the same terms and
conditions.
ARTICLE III. TERMINATION. The following shall constitute events of default under THIS CONTRACT: a)
any material misrepresentation made by the CONTRACTOR to the CITY, b) any failure by the
CONTRACTOR to perform any of its obligations under THIS CONTRACT including, but not limited to, the
following: (I) failure to commence performance of THIS CONTRACT at the time specified in THIS
CONTRACT due to a reason or circumstance within the CONTRACTOR's reasonable control, (ii) failure to
perform THIS CONTRACT with sufficient personnel and equipment or with sufficient material to ensure the
completion of THIS CONTRACT within the specified time due to a reason or circumstance within the
CONTRACTOR's reasonable control, (iii) failure to perform THIS CONTRACT in a manner reasonably
satisfactory to the CITY, (iv) failure to promptly re-perform within reasonable time the services that were
rejected by the CITY as erroneous or unsatisfactory, (v) failure to comply with a material term of THIS
CONTRACT, including, but not limited to the Affirmative Action requirements, and (vi) any other acts
specifically and expressly stated in THIS CONTRACT as constituting a basis for termination for cause. The
CITY may terminate THIS CONTRACT for its convenience upon fourteen (14)days prior written'notice.
ARTICLE IV. DAMAGES. From any sums due to the CONTRACTOR for services,the CITY may keep for its
own the whole or any part of the amount for expenses, losses and damages as directed by the Purchasing
Director,incurred by the CITY as a consequence of procuring services as a result of any failure,omission or
mistake of the CONTRACTOR in providing services as provided in THIS CONTRACT.
ARTICLE V. GOVERNING LAWS AND ORDINANCES. This CONTRACT is made subject to all the laws of
the State of Illinois and the ordinances of the.CITY and•1if any such clause herein does not conform to such
laws or ordinances, such clause shall be void(the remainder of the contract shall not be affected) and the
laws or ordinances shall be operative in lieu thereof
ARTICLE VI. AFFIRMATIVE ACTION. The CONTRACTOR will not discriminate against any employee or
applicant for employment because of race,color,religion,sex,ancestry,national origin,place of birth,age or
physical handicap which would not interfere with the efficient performance of the job in question. The
contractor will take affirmative action to comply with the provisions of Elgin Municipal Code Section 3.12.100
and will require any subcontractor to submit to the CITY a written commitment to comply with those provisions.
The CONTRACTOR will distribute copies of this commitment to all persons who participate in recruitment,
screening, referral and selection of job applicants and prospective subcontractors.
ARTICLE VII. ASSIGNABILITY. The CONTRACTOR shall not assign, sell or transfer any interest in THIS
CONTRACT without prior written consent of the CITY.
ARTICLE VIII. AMENDMENTS. There shall be no modification of the CONTRACT, except in writing and
executed with the same formalities of the original.
ARTICLE IX. NOTICES.Any notice given under this CONTRACT shall be in writing and shall be deemed to
have been given when hand delivered or deposited in the U.S. mail, certified or registered, return receipt
requested, addressed, if to CONTRACTOR, at the address set forth above to the attention of the project
manager or undersigned representative, and if to the City, to the attention of the City Manager, 150 Dexter
Court, Elgin, IL 60120 or to such other address and/or authorized representatives as either party shall
designate in writing to the other in the manner herein provided.
ARTICLE X. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to and shall
indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and
against any and all claims, suits,judgments, costs, attorney's fees, damages or any and all other relief or
liability arising out of or resulting from or through or alleged to arise out of any acts or negligent acts or
omissions of Contractor or Contractor's officers,employees,agents or subcontractors in the performance of
this agreement,including but not limited to,all goods delivered or services or work performed hereunder. In
the event of any action against the City, its officers, employees, agents, boards or commissions covered by
the foregoing duty to indemnify,defend and hold harmless,such action shall be defended by legal counsel of
the City's choosing.
ARTICLE XI. PUBLICITY. The CONTRACTOR may not use,in any form or medium,the name of the City of
Elgin for public advertising unless prior written permission is granted by the CITY.
ARTICLE XII. APPROPRIATIONS.The fiscal year of the CITY is the 12 month period ending December 31.
The obligations of the CITY under any contract for any fiscal year are subject to and contingent upon the
appropriation of funds sufficient to discharge the obligations which accrue in that fiscal year and authorization
to spend such funds for the purposes of the contract.
If, for any fiscal year during the term of the CONTRACT, sufficient funds for the discharge of the CITY=S
obligations under the contract are not appropriated and authorized,then the CONTRACT shall terminate as of
the last day of the preceding fiscal year, or when such appropriated and authorized funds are exhausted,
whichever is later,without liability to the CITY for damages, penalties or other charges on account of such
termination.
ARTICLE XIII. ENTIRE AGREEMENT. This CONTRACT embodies the whole agreement of the parties.
There shall be no promises, terms, conditions or obligations other than those contained therein; and this
agreement shall supersede all previous communications, representations, or agreements, either verbal or
written, between the parties.
The person signing THIS CONTRACT certifies that s/he has been authorized by the CONTRACTOR to
commit the CONTRACTOR contractual and has been authorized to execute THIS CONTRACT on its behalf.
IN WITNESS WHEREOF the parties have hereto set their hands the day and year first above written.
CONTRACTOR CIITYY OF ELGIN
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Name and Title David Dorgan
City Manager
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Agenda Item No.
City of Elgin
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September 19, 2003 G i 00 '" F.
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TO: Mayor and Members of the City Council •� ` ,.
FINANCIALLY STABLE CITY GOVERNMENT
EFFICIENT SERVICES,
FROM: David M. Dorgan, City Manager `.1 AND QUALITY INFRASTRUCTURE
Terry Podzimek, Fleet Services Superintendent
SUBJECT: RFP# 03-092 - Offsite Fueling
PURPOSE
The purpose of this memorandum is to provide the Mayor and
Members of the City Council with information to award a bid for
offsite fueling to Boncosky Oil Company.
BACKGROUND
Since the Environmental Protection Agency rules and regulation
rft. changes for fueling facilities took effect in December of 1998,
the City has utilized offsite fueling for its fleet of
approximately 400 vehicles . Our current contract expires on
November 22 , 2003 . For the purposes of the bid, wholesale fuel
prices were established based on the low side of the OPIS (Oil
Price Information Service) refinery price schedule . This is the
price per gallon the fuel distributors pay for a gallon of
product, dated August 20th, 2003 . The proposing firm is then
asked to establish the markup per gallon that they will charge
for each type of fuel . This is added to the wholesale price to
determine the total cost per gallon to be charged to the City
for the fuel .
Requests for Price Proposals were sent to three vendors and an
advertisement was published in the Daily Courier News on August
11, 2003 . One timely bid was received on August 26th from
Boncosky Oil Company of Elgin, our current fuel provider. Their
proposed per gallon price markup for this contract period is
$0 . 19 (unleaded & diesel) at the two automated locations on
State Street and $0 . 25 (unleaded & diesel) at the three gas
station sites . Considering the large price fluctuations in the
fuel market today, this compares favorably to the last contract
fek period where the markup per gallon was $0 . 15 and $0 .20
respectively at the two types of sites .
i
r RFP for Offsite Fueling
Date September 19th 2003
Page 2
Additional costs will be incurred due to the required taxes for
Illinois Motor Fuel Tax (MFT) , Illinois Underground Storage Tank
(UST) and Illinois Environmental Impact Fee (EIF) . These charges
currently are $0 . 21/gallon for unleaded gas and $0 .23/gallon for
diesel fuel .
In addition to the pricing structure, the bid requires the
vendors to meet basic criteria needed for the offsite vending
approach to work logistically for the City. A summary of those
criteria is as follows :
• The ability to provide 24 hour, 7 day a week fueling
• The ability to dispense the quantity of fuel the City uses,
at multiple locations and from a minimum number of pumps
• The ability to dispense fuel in the event of a power
failure.
• The ability to meet reporting, billing and security
requirements
• The ability to fuel a vehicle in the field, when needed
• To provide a customer reference list
Boncosky was once again able to meet all of the above mentioned
criteria.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
TrIL-
FINANCIAL IMPACT
The expenditure for fuel in 2001 was $352 , 919 and in 2002 was
$369, 168 . Based on the number of gallons used in the last year
(300, 840) , the OPIS prices in August and the proposed mark-up,
the estimated annual value of this contract award is $454 , 100 .
The actual cost paid will vary based on fuel price fluctuations
and usage . There are sufficient funds available in the Equipment
Replacement Fund in account number 601-4701-796 . 17-15 "Vehicle
Fuels" . The 2003 budget is $450, 000, with a current balance of
$192 , 750 . The initial departmental request for the 2004 budget
is $450, 000 .
ew
i .
r RFP for Offsite Fueling
Date September 19th 2003
Page 3
LEGAL IMPACT
t' 11l1 / The contract for this purchase is the Standard City Purchasing
V n 1 if �/ Agreement .
ALTERNATIVES
1 . Approve the offsite fueling proposal from Boncosky as
recommended
2 . Direct staff to pursue other options
RECOMMENDATION
It is recommended that the City Council approve a two-year
purchase agreement, with the option to renew for an additional
year, with Boncosky Oil Company of Elgin as outlined in the memo
above.
Respectfully submitted for Council consideration.
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