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We estimate we will end 2008 with approximately $,300,000 in fuel purchases for the year. Today's 2,,'i wholesale spot price for unleaded gasoline is $,2.07 per gallon and $,3.42 per gallon for diesel fuel. Again 29 we will have up to date information on this bid opportunity for discussion at your meeting. 3('-) Policy Objective 3 1 Staff strives to find the most cost effective purchasing opportunities to meet budgetary objectives. Many 32 purchasing options are subject to market volatility. We use the best information we are able to obtain 33 and consider historical fluctuations in the market to recommend purchasing authorizations. All 34 purchasing must comply with statutory requirements. 35 Financial Implications 36 Staff has recommended $286,775 in the proposed budget for 2009. We are anticipating that participation 37 in this fuel bid will assure that 2009 fleet fuel purchases are within the recommended budgetary amount. 38 Staff recommendation 39 Staff recommends participating in this cooperative purchasing venture. While there is some risk that °1(' -) fuel prices could go lower, absent a solid national energy policy, we feel this market will continue to 4 eXDerience wide swinas inDricina- 42 REQUESTED COUNCIL ACTION 43 Motion aDDroving DarticiDatina in ioint Durchase of fleet fuel for 2009 as Dart of the State of Minnesota 44 contract Prepared by: Duane Schwartz Page 2 of 2