HomeMy WebLinkAbout2008-08-11 08-276 ORDERItem No. '8 276
Date: August 11, 2008
Item/Subject Order, Authorizing the Finance Director to Enter Into Fixed Price Contracts for Fuel Oil
for Fiscal Year 09
Responsible Department: Flnance
Commentary:
Over the last few years, the City has attempted, when possible, to purchase No. 2 fuel oil andlor 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 once remains available.
As a result, we are seeking the author'Ity to lock in prices without the delay required to seek Finance
Committee approval.
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 at or below the amount budgeted by the City.
Given the omgoing uncertainties surrounding the energy market, we recommend your approval
Deparbnent Head
Manager's Comments:
This Order was reviewed and recommended for approval by the Flnance Con ittihegipulation
that the Committee W notified! if such action a taken. L/✓i/eC�,f,A
d./ GtYManager
Associated Information
Order
approval:
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3 CITY OF BANGOR
(TITLE.) Order, Authorizing the Finance Director m Enter Into Fixed Price Contracts for Fuel 011 for
Fiscal Year 09
WHEREAS, energy prices are highly volatile and difficult m predict; and
WHEREAS, It has been the recent practice of the City W lock -in fixed fuel prices for each fiscal year in
an effort to reduce both cost and risk; and
WHEREAS, fuel prices are currently signifil higher than the fixed prices paid by due CM last year',
and
WHEREAS, fuel prices may become more favorable at some time in the future; and
WHEREAS, in order to achieve the maximum benefit W the Cly, it may be necessary for the City to
enter into a contract quickly.
NOW, THEREFORE, BE R ORDERED BY THE CRY COUNCIL OF THE CITY OF BANGOR, THAT,
at any point where It Is determined to be advantageous, the finance Director, in consultation with the
CM Manager and Finance Committee Chair, is hereby authorized W enter into fixed price contracts for
various fuel and energy products, including No. 2 fuel (Al and diesel fuel, for the ❑figs Fiscal Year 09.
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Director to enter mto P ea Prlce
Contracts for Fuel Oil fun: PLenl
Year 09
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