Valley County approves one-year propane services contract with Valleywide Cooperative

Valley County commissioners on Sept. 24 approved a one-year contract for county propane services with Valleywide Cooperative after staff said a three-year agreement would exceed procurement limits.

The contract was presented during the Buildings and Grounds update. Staff and commissioners discussed a discrepancy between the contract cover page and the contract body about the end date. Buildings and grounds staff Scott said the contract documents had been reviewed and signed and that the contract language in the agreement itself showed a one-year term for the coming year.

Commissioners and staff discussed the trade-offs between single-year and multiyear contracts. Staff said a three-year agreement could yield a lower per-gallon markup because the vendor would be able to lock pricing against the Bellevue rack or other commodity references; however, a longer term would push the contract value past the county's $100,000 threshold for multi-year awards. Scott noted the county could include a fiscal-year funding clause allowing termination if the county lacks appropriation, and said that clause has been used in other multiyear county contracts, including a recent three-year elevator maintenance agreement.

A motion to sign the Valley County facilities buildings and grounds propane agreement with Valleywide Cooperative was moved, seconded and approved.

Commissioners asked staff to run a request for proposals next year with a multiyear option so the county can compare prices and determine whether a longer-term contract would be advantageous when considered inside next year’s budget process.