Board approves three-vendor fuel pool for 2027, conditions Petroleum Traders' insurance

The Michigan City Board of Public Works and Safety voted unanimously July 20 to award a three-vendor pool for municipal fuel procurement beginning in calendar year 2027.

City attorney LePage told the board the city received three sealed proposals and recommended entering contracts with Keystone Cooperative Inc., Petroleum Traders Corporation and Al Warren Oil Company Inc. "I so I would recommend awarding entering into a contract with all 3 of them," LePage said. LePage added that Keystone and Al Warren had approved certificates of insurance on file and that Petroleum Traders still needed to update its insurance information.

The board opened the item for public comment and found none. A motion to approve the three contracts, conditioned on Petroleum Traders providing a certificate of insurance, passed by unanimous voice vote.

Why it matters: forming a vendor pool gives the city multiple suppliers for fuel purchases and can help manage supply and price volatility for municipal operations including public works and transit. The board’s action authorized staff to proceed with contract steps after the outstanding insurance documentation is provided.

What the board approved: the board approved entering into contracts with the three named firms for the city’s fuel procurement pool, with Petroleum Traders’ contract contingent on receipt of an updated certificate of insurance. The board did not announce contract lengths, unit prices, or other commercial terms in the meeting record; those terms are to be finalized via the city’s procurement process.

Next step: staff will finalize contract documents and confirm Petroleum Traders’ certificate of insurance before completing the award.