HomeMy WebLinkAbout2002-01-28 02-93 ORDERCOUNCILAMON
Item No. 02-93
Date: 1-28-02
Item/Subject: Order, Authorizing the City Manager M Enter Into a Fixed Price contract for Fuel
Oil, Diesel, and Gasoline for Fiscal Year 03
Responsible Department: finance
Over the past New months, the rest of oil and gasoline has dropped significently. The City's recent
Practice has been to purchase fuel on a fixed price basis. Last May, we locked into contract prices
for the year in the 90 to 95 cent per gallon range. The current market ranges from 69 to 73 cents
with at least one vendor offering fixed price contracts for next year which range from 69 M 85 cents
per gallon based on month of delivery.
Given the current market, we would like to investigate locking in prices for Me Cry's Fiscal Year 03.
Given the rapid changes which occur, the attached order will authorize the City Manager to enter
into a fixed price contract for fuel for Fiscal Year 03. The Purchasing Agent will compact a number of
potential fuel suppliers prior M establishing a contract Mat is advantageous W the City.
Deparbnent Heatl
Manager's Comments:
I would recommend your approval. This will give us the needed flexibility to enter into a contract M
take advantage of appropriate �pricing opportunities and reduce the cost and risk associated with
energy paces. fxavt�u l oQao 'rc-a�wr+r+-'-
City Manager
Associated Information: Order
"—
Hance Director
Legal Approval:
City/ Kftr
Introduced for
r
X Passage
_ First Reading
page_ of
Referral
02-93
A Zi dlo Councilor eal> r January 28. 2002
No
CITY OF BANGOR
CrULE.) Order, AuNaizirg the City Managerto Enter Into a Rzed Price Contract for Fdd dl, Diesel,
and GazUine for Fiscal Year 03
WHEREAS, energy prices are highly volatle antl difficult to Predict; and
WHEREAS, t has been the recerrt praWce of the City to lock in fuel prkg for each fiscal year In an
effort W reduce both cost and risk; and
WHEREAS, fuel Prices are wnendy significantly layer than the fixed price pold by the OtY; and
WHEREAS, in order to achieee the mammum berhefit to the City, It may be rhe DRI for the City to
enter Into a contract quickly.
NOW, THEREFORE, BE rr ORDERED BY THE CRY COUNCIL OF THE CITY OF BANGOR, THAT:
The ON Manager Is authorized to enter into a fixed price contract for various fuel and energy products
for the ONs Fiscal Year 03. Dior W entering into such contact, the Purchasing Agent shall mmact
potental supplies to seek the m0R advantageous arrangements for the OWS suPPly Contract.
Al111 CITY COMCIL
January 28. 2002
Platform scale ared Scourged
for Passage
Passed
02-93
040AR
(TITLE,) euinoriviug the City waager to
Enter Into a Pize Price Conroe[ for fuel
M1. Diesel and Gasoline for Fiscal Year 03
Assigned to Councilor