HomeMy WebLinkAbout2009-01-12 09-048 ORDERCOUNCIL ACTION
Item No, 09 01-18
Date: January 12, 2009
Item/Subject: Order, Authorizing the Finance Director to Enter Into Fixed Price Contracts for Fuel Oil
for Fiscal Year 10
Responsible Department: Finance
Commentary:
Over the last few years, the City has attempted, when possible, to purchase No. 2 fuel oil and/or diesel
fuel on a fixed price basis. The market for these products has been extremely volatile over this period,
and it is often necessary to make a quick decision to lock in a price while that price remains available.
As a result, we are seeking the authority to lock in prices without the delay required to schedule a
Finance Committee meeting and seek Committee approval. The Chair of the Finance Committee will
be consulted in advance of a decision to lock in prices and the Finance Committee will be notified when
such an action is taken.
This is generally the same approach that has been taken in prior years. We are hopeful that we will
soon be in a position to lock in the price of heating fuel for the coming year at or below the amount
budgeted by the City.
Given the on-going uncertainties surrounding the energy market, we recommend your approval.
Ac
Department Head
Manager's Comments:
This Order was reviewed and recommended for approval by the Finance Committee.
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City Manager
Associated Information: Order
Budget approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
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finance Director
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ity Solicitor
Page _ of
09 048,
Assigned to Councilor Stone January 12, 2009
CITY OF BANGOR
(TITLE.) Order, Authorizing the Finance Director to Enter Into Fixed Price Contracts for Fuel Oil for
Fiscal Year 10
WHEREAS, energy prices are highly volatile and difficult to predict; and
WHEREAS, it has been the recent practice of the City to lock -in fixed fuel prices for each fiscal year in
an effort to reduce both cost and risk; and
WHEREAS, fuel prices are currently significantly lower than the fixed prices being paid by the City this
fiscal year; and
WHEREAS, fuel prices have become more favorable; and
WHEREAS, in order to achieve the maximum benefit to the City, it may be necessary for the City to
enter into a fixed price contract quickly.
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
at any point where it is determined to be advantageous, the Finance Director, in consultation with the
City Manager and Finance Committee Chair, is hereby authorized to enter into fixed price contracts for
various fuel and energy products, including No. 2 fuel oil and diesel fuel, for the City's Fiscal Year 10.
IN CITY COUNCIL
January 12, 2009
Motion Made and Seconded
for Passage
Pa d
CITY CLERK
,# 09-048
O R D E R
(TITLE,) Authorizing the FinaUce Director
to Enter into Fixed Price Contracts for
Fuel Oil for Fiscal Year 10
Assigned to Councilor �S�