City of Powell River councillors will vote on a recommendation for a $652,115.70 per year contract to supply petroleum for the city.
At the December 13 committee of the whole meeting, councillors heard a presentation from city manager of operational services Rod Fraser, recommending the city enter into a two-year agreement, with an option to extend for one year, with Parkland Fuel Corporation, for the supply of petroleum.
Fraser said the city issued a request for a quote for supply of gasoline and diesel for 2023 to 2024. The request went on BC Bid, so it went province wide.
“Usually, we get two local bids, as we did this time,” said Fraser. “We received bids from Parkland and Sunshine Fuels.”
Fraser said the two companies become one as of December 13 and he has spoken to them.
“Service wouldn’t change if council still wants to enter into an agreement as per the recommendation,” said Fraser. “It will still be the same drivers and the same people managing it and the same people looking after delivering fuel to us.”
Fraser said the $652,115.70 is in the budget for 2023.
“The fuel itself is for everything we do,” said Fraser. “It’s for everything from weed eaters to mowers, moving up to gas-powered vehicles, to buses, backhoes and garbage trucks.
“Two-year agreements are typical and there is an option to extend it to a third year if we are both in agreement. We exercised that on the last one so it was actually three years. It worked out well and there were no concerns with services.”
Councillor Trina Isakson said council has adopted a social procurement policy. She said prices between the two bids were very similar, so she wondered if there were other considerations related to community investment, local ownership or hiring practices considered in this process.
Fraser said in the past, there have been two local bids, so there has not been a lot of competition.
The city is looking service and price, said Fraser.
The committee gave unanimous consent to send the matter to city council during a January 2023 meeting.
