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