Loading...
HomeMy WebLinkAbout2015-01-26 15-081 ORDERCOUNCIL ACTION Item No. 15-081 Date: January 26, 2015 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 with the City's current fuel suppliers for purchases through June 30, 2016. The 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 through June 30, 2016. The City has a contract with fuel supplier through June 30, 2017. While preparing pricing for the upcoming FY 2016 budget process, both of the City's current fuel vendors, Maine Energy and Dysarts, indicated the ability to provide fixed pricing for diesel gasoline, heating oil and propane. Earlier this evening the Finance Committee will hold a special meeting to review staff recommendation to authorize the Finance Director or City Manager to execute fixed rate pricing contracts for fuel through June 30, 2016. By way of an example, the City and school purchase approximately 350,000 gallons of diesel from Dysarts. The price per gallon in January 2014 was $3.40 and the price per gallon in January 2015 was $2.13. The market price estimate we received from Dysarts on January 15, 2015 was $2.17 per gallon for gallons purchased during FY 2016. 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 recommended by the Committee and approved by the Council, staff will provide an update at the next Finance Committee meeting following any such action. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for x Passage First Reading Referral Department Head C rn City Manager Page _ of nance Director Solicitor Assigned to Councilor Sprague CITY OF BANGOR 15-081 JANUARY 26, 201 S (TITLE,) ©rderF Authorizing the Execution of Fixed gate Pricing Contracts with the City`s Current Fuel Suppliers WHEREAS, the City of Bangor currently has a contract with fuel suppliers through June 30, 2017; and WHEREAS, the contract does not provide for fixed rates for fuel; and WHEREAS, the City has an opportunity to have fixed rates for fuel through June 30, 2016. 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 fixed the rate for fuel with the Clys current fuel suppliers for purchases through June 30, 2016. IN CITY COUNCIL JANUARY 26, 2015 MOTION MADE AND SECONDED FOR PASSAGE PASSED CITY CLERK