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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