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District recommends fluctuating diesel price after Keystone purchasing bid; 87‑octane had only firm bid
Summary
Finance staff recommended accepting fluctuating diesel pricing at $2.64 per gallon (expecting market declines) and taking the firm 87‑octane bid (about $2.886/gal); the fuel bid will appear on the board agenda for approval. The administration recommended a 30,000‑gallon exposure for budgeting.
Mr. Bracket presented the results of the Keystone Purchasing Network fuel solicitation and recommended the committee accept a fluctuating (market) price for diesel while taking the firm bid for 87‑octane gasoline.
He said the fluctuating diesel bid came in at about $2.64 per gallon, with a firm diesel price at about $2.68 per gallon. For 87‑octane, no fluctuating bids were received and the lone firm bid came in at about $2.886 per gallon; that firm price would need to be accepted. Bracket explained he had submitted expected usage of 30,000 gallons for bid purposes to avoid being contractually responsible for unused volume at a quoted firm price.
Board members discussed risk exposure to market swings. One member framed the risk as roughly $6,000 for a 20‑cent swing on 30,000 gallons, while Bracket reiterated that fluctuating pricing would allow the district to participate in savings if market prices decline and accept additional cost if prices rise. Bracket said he would place the recommended bids on the board agenda for approval at the next meeting.
