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Regular City Council Meeting Monday, October 27, 2008 Page 8 out slightly ahead through spot purchasing in past years. However, Mr. Schwartz noted that due to drastic price increases, the City was significantly behind this year; and opined that there was a risk to the City in using either method. Mr. Schwartz reviewed the State of MN purchasing program and its administra- tion; other City purchases through state contract; and the State serving as the lead agency for a joint fuel bid. Mr. Schwartz noted the need for a decision for City participation within the next few weeks, and commitment for participation on a monthly basis for 2009; with anticipated bid opening in December and immediate award of bid to vendor(s) to allow them to lock in the futures market. Mr. Schwartz reviewed the many factors affecting risk, including market condi- tions, world economy, Middle East stability, and long-term energy policies and demands. Mr. Schwartz reviewed the City's fuel expenditures from 2005 - 2009 proposed ranging from $165,599 - $300,000 (2008 final estimate); with $286,775 estimated for the City Manager-recommended 2009 proposed budget. Mr. Schwartz further reviewed the City's current and anticipated prices for both unleaded and diesel fiz- els. Mr. Schwartz advised that City Manager Malinen, Finance Director Miller, and he had met today to determine the best course for the City, and staffs recommenda- tion to the City Council. Mr. Schwartz advised that staff recommended participa- tion in this cooperative purchasing venture at 75% of monthly average use from April through December of 2009, and committing to nine months; with the City continuing, for the months of January through March, to buy on the spot market. Mr. Schwartz advised that staff discussions would be to encourage a 5% reduction in fuel use for all departments as a 2009 goal. Discussion included impacts of the City's commitment versus spot market oppor- tunities; Police Department identified as the City's largest user; anticipated 5% reduction achieved through adjusting habits and pre-planning vehicular use and trips; and re-evaluation at the end of 2009 to determine benefits to the City. Ihlan moved, Roe seconded, the City of Roseville's participation in joint purchase of fleet fuel for 2009 as part of the State of MN contract; as detailed by staff and for nine month involvement. Councilmember Roe spoke in support of the program, opining that anything that could be done to save taxpayer monies was good; and noted that economies of scale for joint purchases were a prudent approach by staff. Mr. Schwartz advised that, given the timing, additional information on the actual bids should be available to the City Council before fina12009 Budget approval.