CONSENT AGENDA - Jon Haukaas, Director of Public Works
Title
AUTHORIZATION TO ENTER INTO FUEL CONTRACT WITH STATE OF MINNESOTA FUEL CONSORTIUM PURCHASE PROGRAM
Background
Over the last number of years the City has been purchasing fuel for our vehicles through the State of Minnesota’s Fuel Consortium Purchase Program. By joining many other large fuel users throughout the State the City has been able to get very attractive fuel prices for our fleet.
The City has budgeted $400,150 for purchasing fuel in 2019. We have locked in our price under the fixed fuel price contract for a minimum of 168,000 gallons of fuel. We will be allowed to order additional fuel over this estimated use under the contract if needed throughout the year. This covers fuel for all city owned vehicles in Public Works, Police, Inspections, etc. and also for fuel sold to our partnering agencies such as SBM Fire, the school districts, and the NSC.
For the time period of February 2019 through January 2020 the City will pay $1.597 for gasoline, $2.135 for Winter Blend Diesel fuel and $2.055 for Summer Blend Diesel fuel. (Winter vs. Summer has to do with the percentage of bio-diesel blended in the fuel.)
Recommendation
By motion, Authorize City of Blaine to enter 2019-2020 Fuel Consortium Purchase Program through the State of Minnesota up to the approved budgeted amount of $400,150.