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Canby council advances $1.135 million Public Works fuel-station contract; city says bulk buying will improve emergency resilience
Summary
Councilors voted Jan. 22, 2025, to move Ordinance 1639 to a second reading authorizing a contract with Mangan Construction Inc. for a new city fuel card lock station. The station would increase on‑site fuel capacity and allow bulk purchasing; staff said construction could take about 10 months after award.
Canby City Councilors voted on Jan. 22, 2025, to advance Ordinance 1639 — authorizing the city administrator to contract with Mangan Construction Inc. to build a new Public Works fuel card lock station — to a second reading scheduled Feb. 5, 2025.
Jerry Nelzine, Canby Public Works Director, described the proposal as an operational and emergency-preparedness improvement. The low bid — identified in meeting materials as $1,135,210 — covers construction of a fuel island and two aboveground tank systems sized to hold 24,000 gallons of gasoline and 12,000 gallons of diesel, plus a 350‑gallon heated diesel exhaust fluid (DEF) tank. Nelzine said the tanks are sized so the city can order fuel in bulk (for example, 10,000‑gallon deliveries) and rotate inventory so stored fuel does not degrade.
Nelzine told councilors the tanks will allow about three months of operation in a large emergency if the city keeps minimum reorder thresholds; the station will run from the Public Works emergency generator to function during power outages. He added the site layout tucks tanks near the Public Works warehouse, includes landscaping and a second phase of site improvements such as paving and lighting.
Councilors discussed cost‑recovery and usage: the city plans to charge other public‑sector users (Canby Fire, Canby Police, Canby Utility and others) for fuel and expects to recoup operating costs. Councilor Patton asked whether sharing fuel would reduce fuel‑tax revenue; Nelzine replied the city will still pay fuel tax on bulk purchases and that staff will set card fees and billing practices so costs can be recovered.
Council members praised the long-range effort to add local bulk fuel storage after difficulties during a multi‑agency ice storm. Staff said the project came in under the total budget set across related line items.
The council voted 6‑0 to move the ordinance to a second reading; the contract award process and construction schedule will resume after the Feb. 5 reading and any required administrative steps.
