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Depoe Bay council weighs fueling options as harbor fuel margins shrink
Summary
Councilors and harbor staff reviewed fuel-dock operations, thin margins and safety/operational constraints; options discussed included card-lock systems, leasing operations, larger tanks, emergency-fuel grants and issuing or widening an RFP to external suppliers; staff will solicit pricing from local suppliers and return findings.
Depoe Bay councilors spent a large portion of the Oct. 7 meeting focusing on the harbor fuel‑dispensing operation, its persistent operating deficit and potential procurement options.
Harbor staff and public commenters laid out the system’s history: the city moved dispensing equipment after two early spills, and the current arrangement requires city staff to attend fueling events, manage counters and process payments. Several presenters said the harbor’s fuel business yields a very slim margin — 2024 harbor fuel income was cited at roughly $231,000 while fuel purchases were about $198,000 — leaving little room to absorb payroll, insurance and maintenance.
One consultant and several captains urged the council to re‑examine cost allocations and hours of operation to reduce labor overhead. "Do a full review of the true costs associated with the fuel dock," a public commenter advised, recommending an accounting of labor time and transaction overhead to identify possible savings.
Technical options discussed included a card‑lock dispensing system (which state fueling regulations may restrict under certain configurations), enlarging tanks, a floating fuel dock model, leasing the fueling operation to a private operator, or creating a port district to spread costs across property owners (the latter was viewed as unlikely and long-term). Councilors also discussed emergency-fuel considerations and the possibility of qualifying the harbor for targeted grants if the facility is designated as part of local emergency fuel infrastructure.
Council directed staff to contact local suppliers (Carson and Sheldon were named), obtain updated pricing and return to council with responses to an RFP inquiry rather than immediately launching a wide procurement. Councilors said the city should also solicit more input from harbor users — especially captains who must fuel during odd hours — and consider pilot changes to fueling hours and staffing to reduce labor costs.
No procurement decision was made. Staff said they will reach out to local fuel firms for pricing and refine cost and usage data before returning recommendations to council.
