HomeMy WebLinkAbout2020-03-09 20-102 Resolve
03/09/202020-102
03/09/2020
20-102
Finance
Resolve
N/A
Title, Resolve
Ratifying Finance Director's Actions to Sign a Contract with Dysart's for Diesel Fuel for Fiscal Year 2021
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 gallong 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
Fiscal Year 2020 $2.19
With the recent drop in crude prices, staff reached out to Dysart's to obtain a fixed rate price for
fiscal year 2021 (diesel fuel can be purchased up to 18 months in advance, which allows us to fix a
price now for FY 21). On March 2, 2020, the Finance Director agreed to contract with Dysart's for
diesel fuel for FY 2021 at the rate of $1.91/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.
Recommend for passage
New Business
03/09/202020-102
CITY OF BANGOR RESOLVE
03/09/2020
20-102
Okafor
Ratifying Finance Director's Actions to Sign a Contract with Dysart's for Diesel Fuel for Fiscal Year 2021
WHEREAS, fuel prices are highly volatile; and
WHEREAS, the City's fuel supplier, Dysart's, offered fixed pricing in the amount of $1.91 per gallon to the City
for Fiscal Year 2021; and
WHEREAS, on March 2, 2020, the Finance Director locked in fuel prices for FY 2021, 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 $1.91 per gallon
for diesel fuel for fiscal year 2021.
IN CITY COUNCIL
MARCH 9 2020
CO 20-102
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
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