Bedford County school board approves one-year fuel contracts to lock lower prices

The Bedford County Public Schools board approved one-year contracts for heating fuel, off-road diesel, on-road diesel and unleaded gasoline after staff presented low bids and recommended locking prices for the year.

District staff presented the bids at a special called meeting April 7, saying the low offers were about 16% below the previous year and would allow the district to budget roughly $230,000 less for fuel in the coming year.

"We got very aggressive pricing, 16% lower than the previous year. It will allow us to budget almost $230,000 less in the budget when we go back to revise the budget," Mr. Hagler, a staff member, told the board. He identified Glenwood as the low bidder for heating and diesel and Foster Fuels as the low bidder for unleaded gasoline.

Board members asked whether locking in prices now had risks if market prices fell later. "It has happened where we've locked in and it's gone down, but it's happened where we've locked in and it's gone up," Mr. Hagler said, describing the district's approach as a budgeting tool to avoid midyear variance. He said vendors typically buy much of the fuel at the locked-in price and do not assume all market risk.

Board members also asked operational questions about the contracts. Mr. Hill asked whether the prices included seasonal additives used in winter; Mr. Hagler said additives were handled on-site and not included in the bid pricing. Board members noted the contracts cover bulk purchases and are intended to provide price certainty for most of the fiscal year.

A motion to approve the fuel bids as presented by Mr. Hagler passed unanimously. The board directed staff to notify the awarded vendors and proceed with the contracts.

The special meeting was then adjourned.