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Home My WebLink About2019-01-14 19-078 Resolve 01/14/201919-078 01/14/2019 19-078 Finance Resolve N/A Title, Resolve Ratifying Finance Director's Actions to Sign a Contract with Dysart's for Diesel Fuel for Fiscal Year 2020 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 Fiscal Year 2019 $2.55 With the recent drop in crude prices, staff reached out to Dysart's to obtain a fixed rate price for fiscal year 2020 (diesel fuel can be purchased up to 18 months in advance, which allows us to fix a price now for FY 20). On January 4, 2019, the Finance Director agreed to contract with Dysart's for diesel fuel for FY 2020 at the rate of $2.19/gallon. Given the potential volatility in the marketplace, this action was taken to minimize the risk of significant increases prior to approval by the City Council. New Business 01/14/201919-078 CITY OF BANGOR RESOLVE 01/14/2019 19-078 Tremble Ratifying Finance Director's Actions to Sign a Contract with Dysart's for Diesel Fuel for Fiscal Year 2020 WHEREAS, fuel prices are highly volatile; and WHEREAS, the City's fuel supplier, Dysart's, offered fixed pricing in the amount of $2.19 per gallon to the City for Fiscal Year 2020; and WHEREAS, on January 4, 2019, the Finance Director locked in fuel prices for FY 2020, which will provide the City and School Department's budget certainty; 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 $2.19 per gallon for diesel fuel for fiscal year 2020. IN CITY COUNCIL JANUARY 14, 2019 CR 19-078 MOTION MADE AND SECONDED FOR PASSAGE PASSED CITY ERIC