Loading...
HomeMy WebLinkAbout2018-05-30 18-218 Resolve 05/30/201818-218 05/30/2018 18-218 Finance Resolve N/A Title, Resolve Ratifying Finance Director's Actions to Sign a Contract with Dysart's for Diesel Fuel for Fiscal Year 2019 For the last several years, the City has been contracting with Dysart's to obtain fixed rate pricing for diesel fuel supply. The City and school purchase in excess of 300,000 gallons of diesel fuel annually. Below is a summary of recent per gallon pricing the City has paid for diesel fuel: January 2014 $3.40 January 2015 $2.13 Fiscal Year 2016 $2.10 Fiscal Year 2017 $1.70 Fiscal Year 2018 $1.87 Fuel costs in general, having been raising dramatically with no sign of abating. The Finance Director contacted Dysart's to determine both current pricing as well as the availability of fixed rate pricing for the summer months or fiscal year 2019. Current pricing was $2.43/gallon, fixed pricing for the summer months was $2.46 and fixed pricing for fiscal year 2019 was $2.55. On May 16, 2018, the Finance Director agreed to contract with Dysart's for diesel fuel for FY 2019 at the rate of $2.55/gallon. With the volatility in the fuel market, this action was taken to minimize the risk of significant increases prior to approval by the City Council. Finance Committee 05/21/2018 Recommend for passage 50 Consent 05/30/201818-218 CITY OF BANGOR RESOLVE 05/30/2018 18-218 Nealley Ratifying Finance Director's Actions to Sign a Contract with Dysart's for Diesel Fuel for Fiscal Year 2019 Whereas, fuel prices have been increasing across the nation; and Whereas, the City's fuel supplier, Dysart's, offered fixed pricing in the amount of $2.55 per gallon if the City locked in pricing for one year; and Whereas, on May 16, 2018, the Finance Director locked in fuel prices for a period of one year, which will give the City and School Department budget certainty for FY 19, in light of the current volatility of fuel pricing; Now Therefore, Be it Resolved by the City Council of the City of Bangor that, The City Council hereby ratifies the Finance Director's actions to sign a contract with Dysart's to obtain fixed rate pricing in the amount of $2.55 per gallon for diesel fuel for fiscal year 2019. 1 IN CITY COUNCIL MAY 30, 2018 CR 18-218 MOTION MADE AND SECONDED FOR PASSAGE PASSED ,er.4.4.) CITY CLERK