A RESOLUTION AUTHORIZING TOWN MANAGER TO ENTER INTO FUEL CONTRACTS IN FY 2009/10 (2009-03-09/R-3.1)

WHEREAS, Chapel Hill Transit staff has begun to investigate the feasibility of purchasing fuel via long term contracts to minimize the effect of volatility on the Chapel Hill Transit budget;

WHEREAS, last month the Town of Chapel Hill entered into a contract for the remainder of the fiscal year to purchase diesel fuel at $1.40 per gallon for Chapel Hill Transit resulting in a $300,000 budget savings;

WHEREAS, currently fuel prices are low but economists predict that fuel prices will rise in the first and second quarters of 2009; and

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is hereby authorized to negotiate and execute a fuel purchase contract now for FY 2009/10 rather than after the budget is approved in June.

This the 9^th day of March, 2009.