Lakeside’s Fire District saves on gas and lowers maintenance costs
We are responding to a retraction request regarding statements posted on the web newspaper “Lakesideinfo.com” from Dodie and Bert Guin, owners and managers of T’ree Acres. Their request comes after an editorial referred to “price gouging” by Bert Guin in reference to the fuel purchases by the Lakeside Rural Fire Protection District.
There are two issues at hand; the price of fuel at the pump and the twenty-four cent state gas tax that the fire department is supposed to be exempted from paying by the state. The fire district determined that they could save a substantial amount of money if they suspended their business with T’ree Acres and began purchasing fuel with a Cardlock network. The transition took place in January of ’09.
It also has the advantage of being mechanically beneficial to drive the trucks a sustained speed and distance.
After running the numbers the fire district has determined they are saving approximately $1200 a year. It wasn’t anything personal, says Darline Atkins fire board member, “we try to be very cognizant of how we spend taxpayer funds.”
At Dodie and Bert Guin’s request Fire Chief Ross was asked the question of why the district has chosen to not support local business for refueling? His pithy response was, “fresher product, cheaper price, and better access.” He followed with, “it is my duty to make sure the district’s money is spent wisely.”
When former Fire Chief Calvin Walker who now serves on the fire board was asked about the Cardlock system he related that it is what was used when he served the district for ten years, from 1990 to 2000.
Vern Stevens, also a past Fire Chief, confirmed that he started the Cardlock use around that same time. During the period after Walker left, Laura Langley, Louie Langley and Dale Harlon served as Fire Chief’s and that is when the change was made from refueling at Cardlock to refueling at T’ree Acres.
Other Fire Districts choose to use the Cardlock system as their preference in fueling their vehicles, for the very reasons stated. The department has not entirely stopped purchasing fuel from T’ree Acres, regular gas is purchased along with the occasional fill up of diesel.
Personal choices
We acknowledge that a business has the personal right to charge whatever prices are seen fit for products sold. It does not follow, however, that it is mandatory for local customers to frequent any particular business. If the same product can be found elsewhere for less money, then it is likely that will be the action taken.
The Lakeside Rural Fire Protection District should absolutely reserve the right to purchase goods and services in a manner that reflects good stewardship of their limited funds. The funds are tax dollars, which comes with an implicit responsibility to give due diligence in the way it is spent. Dodie Guin acknowledged that they (the fire department) needs to seek out the best price.
Guin added, that wasn’t the issue, the issue was the word “gouge“.
Opinion
In the same light, the editorial staff of Lakesideinfo.com is entitled to its opinion of what constitutes “price gouging” in relation to local fuel prices.
After several fact finding interviews done before and after the article was posted Lakesideinfo.com stands by the statements included in the editorial.
As the only seller of fuel products in this city T’ree Acres has somewhat of a monopoly. Until this editorial was written, their prices reflected a higher (at least ten cents) than what was a locally available price. In this economy where every dollar counts the difference in pricing makes a substantial impact on the average budget.
Price conscious
Most of the citizens of Lakeside that were interviewed shopped elsewhere for their fuel and only shopped at T’ree Acres as a last resort. The choice of driving only 12 miles North to the Reedsport gas stations in conjunction with other errands was a common response by most interviewed.
Lakesideinfo.com received several forwarded, e-mails signed by the proprietors of T’ree Acres regarding this fuel issue. Various prices for fuel were put forth in a cost comparison with the stations in Coos Bay and North Bend, we presume in an attempt to show their prices as fair. They alluded to an assumption that the editorial in question had harmed their bottom line.
Fuel tax
They also brought forward fuel tax charged or not charged to the Fire District. Without access to their books it would be impossible for this website to substantiate or deny this item.
However using information they provided, we did find at least one instance of a private individual and the Fire Department being charged the same price, on the same day, with tax included. A customer, a private citizen using a credit card at the pump, and the Fire Department using its charge account. In this case, this issue will have to remain between T’ree Acres and the State of Oregon.
Cost reduction
The largest benefit has been a better price structure and has substantially reduced the Fire Districts overall fuel costs. At an average savings of sixty cents per gallon, this difference alone will be in the neighborhood of $1,200 in a year’s time, or about 1 percent of the department’s total operating budget.
Additionally the CFN Cardlock Network currently in use for refueling has many other advantages that one can see by checking their website.
The record keeping, control of charges and card, the elimination of misappropriation of fuel usage and twenty-four hour availability, were some of the more important advantages.
Dodie Guin does not dispute that the Cardlock prices are much lower and the reason for that is, “no overhead and employee costs.” She followed up saying, “it is not our intention to ever gouge anyone, we are very fair and fuel prices change daily. We always try to help everybody. We do what we need to do.”
The Guin’s have been in business in Lakeside for seventeen years, they carry a range of products from gas, diesel, propane gas, to racing fuel. They have a deli, mini-mart and ATM that is frequented by locals, with their mainstay, the tourists that drive by on the highway.
Maintenance
In elaborating further, the Fire District’s choice to purchase fuel outside of town is the ability to get the diesel truck motors hot enough to remove condensation from the oil, thus reducing maintenance costs by as much as half. This is according to Gold Coast Truck Repair who currently does the majority of the Fire Districts truck service.
Stop and start, around town driving doesn’t allow the vehicles to reach the level of heat required to accomplish this on a regular basis.
Battery maintenance is another concern. Short runs, especially with red lights and siren, run the batteries down. Road miles allow the alternator to fully charge the batteries for a much more reliable piece of emergency equipment.
These facts alone show the Fire Districts decision to purchase fuel through another coastal source as sufficient. If any business truly has the heart of Lakeside in mind, making an apparently large profit off of its non-profit volunteer Fire District would not seem to be a good way to show it.
When times are good it’s likely that the tourist trade and road traffic made the patronage of the citizens of Lakeside a lesser priority.
Judgment
Additionally it would seem like financial suicide for small businesses in a small town to sponsor and or financially support causes with which some morally or philosophically disagree. Although it is everybody’s right to pick a side in moral and political issues, it is divisive and has the consequence of alienating a sometimes-significant portion of the customer base.
Bert Guin as a business owner, chose to take a public, verbal stance at a city council meeting to maintain a contract with an out of state attorney for Lakeside city business, and yet demand that these very same customers should support only local businesses.
Recognition
We do recognize and appreciate Dodie’s many hours of volunteer time and effort along with all the other volunteers within this community.
The price structure put in place at T’ree Acres since the above mentioned editorial is surely appreciated, especially by those elderly folks around town who might not be able to shop for the “down the road” lower pricing.
We hope these “new competitive prices” that came about at the same time, as the previous editorial would remain as their business standard.
This alone might improve their bottom line in the community.
