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K41". / <br />MEMO TO: Mayor and City Counc'1 <br />FROM: Clerk-Administrat <br />DATE: September 13, 198 <br />SUBJECT: GASOLINE PUMPING EQUIPMENT <br />During recent budget discussions with the Public Works Department <br />it was determined that the City has been paying an unusually high <br />price for gasoline when buying in bulk quantities. Staff was <br />advised that the City is limited to buying gasoline from Tessman <br />Oil as they own the dual pump ar.d unleaded gasoline tank. The <br />Public Works Department was directed to determine what price <br />Tessman Oil would place on the purchase of the tank and pump. <br />Tessman Oil has advised staff informally that once the tank is <br />buried the owner of the land assumes ownership of the tank and <br />that they will sell the pump as is to the City for $300.00. Staff <br />has also determined that the price we are paying for gasoline <br />purchased from Tessman Oil is up to 6C per gallon greater than <br />that we would have to pay to other suppliers. Based on a total <br />use of 19,890 gallons in 19B1 this 6C per gallon difference would <br />have resulted in a $1,193.40 savings. <br />Based on this information, staff would recommend that the Council <br />authorize the purchase of the dual gasoline pump from Tessman Oil <br />and the letting of bids for the purchase of gasoline for the City. <br />Sufficient funds are available within the Maintenance Garage budget <br />to finance the purchase of the pump. <br />DFP/pf <br />