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Members discuss ±25% material-deviation threshold and recent market price movement
Summary
Committee members noted the contract defines material deviation as plus or minus 25% and discussed whether typical consumption would meet the threshold; staff also noted market prices recently refreshed lower.
Committee members reviewed the agreement's treatment of usage deviation. One member (S3) explained the agreement defines material deviation as plus or minus 25 percent and said that falling to roughly 75 percent could trigger extra charges.
Members questioned whether the city's consumption typically stays above required quantities and whether the contract terms would therefore be invoked. Another member (S4) noted the market had 'refreshed' since the last meeting and that the current price was lower at this time; the committee discussed short-term market uncertainty and the two-year contract term.
No quantitative analysis or usage data was presented in the transcript; members recommended relying on counsel and consultants' advice and proceeded to approve the agreement. The transcript records a consultant-claimed savings figure but does not supply verifiable documentation for it.
