City of Oak Creek

Common Council Report

Meeting Date:  July 15, 2003

Item No.:         13

Recommendation:  That the Common Council approve the recommendation of the Street Superintendent for the City wide purchase of unleaded gasoline and diesel fuel (#2) from the low bidder of Lakeside Oil through the V.A.L.U.E. bid dated June 23, 2003.  Cost of unleaded gasoline is $1.33 per gallon and the cost of diesel #2 fuel is $1.10 per gallon.

Background:  Waukesha County led a joint effort with several communities and our Street Division in an effort to reduce spending for gas and oil use for all departments in the City.  This agreement is for three (3) years and will start August 1, 2003.  We currently pay $1.33 per gallon for unleaded gasoline and $1.10 per gallon for diesel #2 fuel through the V.A.L.U.E. bid.  (The pricing structure is somewhat different than the previous bid.  The cost is still +1- OPIS (Oil Price Information Service), however, the delivery charges are delineated by the agency.)

It is estimated that the City will use 64,000 gallons of unleaded gasoline in 2003 at $1.33 per gallon totaling $85,120.00.  It is estimated that the City will use 75,000 gallons of diesel #2 at $1.10 per gallon in 2003 totaling $75,000.00.

Fiscal Impact:  City departments budgeted a total of $150,600.00 in the 2003 operating budget for the purchase of gas and oils.  Amounts over budget will be absorbed by each department’s budget.

Prepared by: William H. Schaper Street Superintendent	Respectfully submitted, Robert L. Kufrin City Administrator
Approved by: Wayne St. John Director of Public Works
Fiscal Review by: Beverly A. Buretta, CMC City Clerk

crptvaluebidgasolineandoil