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County staff seeks to switch propane vendor to SEK Co-op to cut fuel costs at transfer station
Summary
Public works staff recommended ending a long-standing lease with Ferrellgas and moving transfer-station propane service to SEK Co-op, which offered new tanks and a per-gallon price of $1.55 through July 31; staff estimated two-thirds savings versus recent deliveries.
Franklin County public works staff told the commission on Feb. 12 they are pursuing a change in propane service at county facilities after comparing pricing and lease terms.
Peg, a county facilities/transfer-station staff member, said recent deliveries from the incumbent vendor were as high as $3.30 per gallon. She said SEK Co-op offered two new 500'gallon tanks with a tank rent of $130 per tank per year and an initial price of $1.55 per gallon if entered immediately; the SEK Co-op price would run through July 31 and could be renegotiated after that period. SEK would also maintain tanks on a keep'full basis.
Peg told commissioners the county used 1,252 gallons of propane in 2024; at SEK's proposed rate, she estimated the county would save about two-thirds of its propane costs for the year compared with current pricing. SEK's tanks were not available until March, she said, but the cooperative offered to transfer any existing propane from the county's current tanks into the new tanks to avoid losses.
Peg asked the commission to authorize staff to end the county's current arrangement with Ferrellgas and move forward with SEK Co-op on the condition that the county review price changes when the one'year SEK contract term ends on July 31. Commissioners did not ask for a separate vote at the meeting and staff said they had submitted paperwork and would finalize arrangements.
Other facility updates: staff reported the paper shredder for the transfer station remains delayed with a vendor timeline of about three weeks and that overhead doors are en route to the vendor in Kansas City; staff said both projects should be completed within two to three weeks.
