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Houston County declines immediate price adjustment request for liquid calcium chloride
Summary
After a contractor cited a 24% rise in a Minnesota fuel index and said a supplier sought an extra 8 cents per gallon, the board took no action on a requested contract price increase; staff estimated a 4-cent increase would cost about $1,600 on the county’s total 40,000-gallon estimate.
The Houston County Board considered a contractor request for a price adjustment to a liquid calcium chloride contract after staff reported a rapid fuel-index increase and a supplier demand for additional delivery fees.
County staff told the board that the Minnesota base fuel index rose roughly 24% over a six‑week period and that the contractor’s supplier asked for an additional 8 cents per gallon for delivery fees. Staff said the 8 cents would translate to about a 6% increase at the current delivered contract price and recommended that the county, if it covered any amount, not pay more than 4 cents per gallon. The county’s estimated annual usage was given as about 40,000 gallons.
Why it matters: Liquid calcium chloride is used on county roads; rapid fuel-price swings can increase delivery costs for short-term contracts. Board members discussed contract language and whether the county should set precedent for price changes absent an escalation clause.
Staff emphasized that Houston County contracts typically lack fuel-escalation clauses used in some state contracts that trigger only after a 15% fuel-index change. Staff noted that the contract contains no escalation provision and said the county is not obligated to increase payments. "We signed a contract. That's the price," one commissioner said during discussion.
Staff estimated the quantitative effect: at 4 cents per gallon on an estimated 40,000 gallons, the additional cost would be about $1,600; because some loads are billed to townships, the county's net share would be roughly $800. Several commissioners favored taking no action to avoid establishing a precedent; the board ultimately did not change the contract.
Next steps: staff will monitor deliveries and follow up if the supplier/contractor situation changes; no formal contract amendment was recorded.
