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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