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Council renews annual bulk fuel contract for one-year term
Summary
Council approved the first one-year renewal of the city's bulk fuel supply contract with New Distributing Company; staff described the contract mechanics as a differential price bid tied to market fuel costs and said current renewal retains the original bid language.
Council approved the first one-year renewal of the city's annual bulk fuel supply contract with New Distributing Company, using the same dollar amount as the original bid to keep contract language consistent while noting market fuel prices have fallen since the 2024 procurement.
Staff explained the original contract, bid in 2024 and effective Oct. 1, 2024, uses a differential price (delivery and margin) layered over a market price. The renewal retains original bid pricing language; staff said that while the contract renewal carries a high not-to-exceed number for budget purposes ($1,482,940.45), fiscal-year fuel costs to date have declined and the fiscal 2026 budget anticipates similar fuel-dollar needs.
The one-year renewal is the first of up to three renewal options under the existing contract and was approved by motion and voice vote.
