Recent surges in the price of gasoline are costing taxpayers about $7,500 more per day to keep police cruisers, fire engines and Knoxville Area Transit buses running.
 
But by buying in bulk, price-shopping with 12 wholesale fuel distributors, and having enough reserve fuel to be able to avoid buying when prices are at their peaks, Knoxville fleet managers are stretching tax dollars as much as market conditions allow.
 
At tonight’s City Council meeting, two decisions will help the City better manage high gas costs:
 
- Council authorized Mayor Indya Kincannon’s staff to execute a $4.15 million agreement with Tartan Oil to supply the City with multiple types of bulk fuel for the next year. Tartan Oil’s proposal was the most responsive low-cost bid submitted by 12 companies.
 
- Council also authorized the Mayor to amend a contract – new total amount, $571,773 – with SPATCO Energy Solutions to complete a fueling facility to serve emergency first responders and their vehicles at the Public Safety Complex.
 
One hidden benefit of the new fuel island: It increases the City’s fuel-storage capacity by 20,000 gallons to a total of more than 135,000 gallons of diesel and gas – enough fuel to service City vehicles for more than three weeks.
 
In other words: If prices surge, City purchasing officials have the fortunate option of waiting a few days until prices level off.
 
“These common-sense practices are standard – part of our effort to be careful stewards of taxpayer dollars,” said Nicholas Bradshaw, the City’s Fleet Services Director. “But when the markets are volatile and fuel prices are high, we see in hindsight just how valuable it was to have taken these proactive planning steps.”