Tinley Park to buy fuel in bulk
BY STEVE METSCH firstname.lastname@example.org February 6, 2013 6:14PM
Updated: March 8, 2013 7:43AM
Rather than gamble on the sometimes hard-to-predict price of gasoline, the Tinley Park Village Board has approved a bulk fuel deal that will lock in one price for an entire year.
Assistant village manager Steve Tilton said the deal “is a safeguard for us if there’s any spike in prices.”
Other communities that buy in bulk have seen savings of about $100,000 annually, he said.
The village board on Tuesday night approved a one-year deal with the Al Warren Oil Co. to supply gasoline and diesel fuel. It will be delivered to the Charles B. Powers Public Works Facility, 7980 W. 183rd St., which is where village vehicles are fueled.
The price has not been set but is expected to be agreed upon within 30 days, Tilton said.
The village previously has bought gasoline from various suppliers through the year, hunting for the best prices available.
“We want to get a better handle for budgeting purposes for our fuel costs,” Tilton said. “What we do now is check with several different vendors and we take the lowest-priced provider. What this program would do is lock the village into known costs for fuel, gas and diesel, so it will help us with budgeting. We’ll know exactly what we’re paying, and we’ll have only one vendor.”
The Al Warren Oil Co. is one of the vendors the village has bought fuel from in past years, Tilton said.
“We think there’s some value in working with one company,” Tilton said.
The board approved the deal on the recommendation of its public works committee.