Title
Intergovernmental Agreement - Fuel Purchases - Orland Fire Protection District and Orland Park Library
History
On September 28, 2005, Resolution 2005-12 was adopted by the Orland Fire Protection District (District) providing the authority for the District to enter into an Intergovernmental Agreement (IGA) with the Village of Orland Park for the purchase of fuel from the Village through the use of the Village’s fuel island dispensing facility.
On October 1, 2005, the Village of Orland Park Board of Trustees authorized the IGA for the District’s fuel purchases.
The existing IGA provides that only the actual cost of fuel may be billed to the District. The cost of fuel is defined as the gallons consumed, times the “Village’s cost per gallon.” A very small quantity of fuel is purchased by the Orland Park Library under a similar arrangement.
In both instances, no accommodation was provided within the IGA to share in the annual costs of permits, inspections or routine maintenance and repairs (Annual Maintenance). Similarly, no accommodations were provided for that sharing of expenses related to systems upgrades, or more major capital repairs that could include tanks, pumps, piping and the physical facility.
Staff has reviewed the Annual Maintenance and Capital costs paid solely by the Village for the past several years. These costs, as well as the fuel consumed by the Village and purchased by both the District and the Library are recapped within Exhibit 1.
The more major Capital cost work was last undertaken approximately ten years ago and consisted of the replacement of the three tanks, new piping, pumps and dispensing facility, as well as an electronic fuel dispensing management system at a cost of approximately $40,000. The anticipated life of the hard improvements was projected at the time to be approximately 15 years.
Presently, the fuel dispensing management system is no longer supported by the vendor and, like all electronic technology, th...
Click here for full text