With fuel prices expected to increase, the city of Ames is looking for ways to minimize fuel prices for CyRide in 2011.

The Ames City Council will be discussing a proposal to use fuel contracts to purchase fuel for CyRide, in which CyRide would agree to buy enough fuel for a two-month period at a predetermined price.

Currently, CyRide purchases fuel every seven to 14 days and pays market price for the thousands of gallons of fuel. Under the proposed fuel contracts, the fuel expenditures would be more stable, which could reduce CyRide fuel costs.

CyRide would enter into a maximum of five fuel contracts of two months each during the year. This would account for 70 percent of the total CyRide fuel expenses.

The remaining 30 percent of the fuel would be bought on the market at a fixed rate, plus a markup or deduct on the market rate.

If the proposal passes, the contracts would be made with companies who propose the lowest fuel price.

The Ames City Council will vote on the proposal at 7 p.m. Tuesday night in council chambers at City Hall, 515 Clark Ave.