Monday evening Jim Marquardt, the City Street Superintendent updated members of the Board of Public Works and Safety on fuel bids.
On January 10th the Board of Public Works and Safety opened the only bid received from Ceres Solutions out of Wabash.
The city was looking to lock in the annual bid and on March 3rd did lock in the price for diesel fuel at $2.94 a gallon. The board ratified the bid award.
Marquardt said Ceres Solutions recommended waiting to see if gasoline prices come down. Right now, if the city would lock in a gallon price for a year the cost would be so high. The Street Superintendent said he has purchased two partial loads, 5,000 gallons for $2.76 a gallon which was better than the original bid price. The second purchase was 6,000 gallons at $3.31 a gallon.
Ceres Solutions is telling Marquardt he can buy gas off the rack price cheaper than the forecasting and speculators of what a price would be. The superintendent just wanted members of the Board of Public Works and Safety to be informed of what is happening.
He presented another issue and noticed it when bids came in earlier this year. The Clerk-Treasure had taken $20,000 out of his warehouse budget reducing it to $180,000. Marquardt said the warehouse budget has been at $200,000. That causes the question of even if he can lock in a decent fuel price will he be able to purchase the oils and stuff they need in the warehouse budget. Marquardt told the Board of Public Work he was just warning of the possible need for an additional appropriation in the future.
