HomeMy WebLinkAbout2016-09-12 16-338 ORDERCOUNCIL ACTION
Item No. 16-338
Date: September 12, 2016
Item/Subject: Order, Authorizing the Execution of Fixed Rate Pricing Contracts
with the City's Current Fuel Suppliers
Responsible Department: Finance
Commentary: The attached order would authorize the Finance Director or City Manager to
execute fixed rate pricing contracts and extend the contract term with the City's current fuel
suppliers for purchases through June 30, 2018. The expiring contract does not provide for a
fixed rate. However, the City's fuel supplier has offered the City the opportunity to have a fixed
rate for up to eighteen months into the future.
Both of the City's current fuel vendors, Maine Energy and Dysarts, have the ability to provide
fixed pricing for diesel gasoline, heating oil and propane.
This is a method the City employed during the last two years. FY 2017's average price for diesel
deliveries is $1.60/ gallon.
As timing may be of the essence to capture the current favorable market pricing, the intent
would be to minimize the downside risk to the City. If adopted, staff will provide an update at
the next Finance Committee meeting following any such action.
This item was reviewed and recommended for approval by the Finance Committee on September
7, 2016.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
x Passage
First Reading
Referral
Department Head
C r- �,
City Manager
Finance Director
Page _ of _
City Solicitor
16-338
SEPTEMBER 12, 2016
Assigned to Councilor Perry
CITY OF BANGOR
(TITLE.) Order, Authorizing the Execution of Fixed Rate Pricing Contracts with the
City's Current Fuel Suppliers
WHEREAS, the City of Bangor currently has a contract for fixed rate diesel fuel through June
30, 2017; and
WHEREAS, this contract is set to expire on June 30, 2017; and
WHEREAS, the City has an opportunity to have fixed rates for fuel through June 30, 2018.
By the City Council of the City of Bangor.
ORDERED, THAT the Finance Director or City Manager is hereby authorized to execute
documents necessary to extend the supplier contract and fix the rate for fuel with the City's
current fuel suppliers for purchases through June 30, 2018.
IN CITY COUNCIL
SEPTEMBER 12, 2016
CO- 16-338
PASSED
CITY CLERK