ST. PAUL – During the Aug. 8 County of St. Paul council meeting, council deliberated selling 1,000 to 2,000 tonnes of 1/2” gravel to Grynn Contracting. The gravel will be used by the company for their own purposes, heard council.
According to information from the municipality, the private sale price for 1/2” gravel is usually $18 per tonne.
But when asked what the gravel’s commercial value is, Scott Jefferey, director of Public Works, said the commercial value is between $24 and $26.
Coun. Dale Hedrick said he was not favourable of the idea of selling to a private companty. “We have our ratepayers or farmers... that want to buy extra [gravel] and we won’t sell it to them... but then we’re going to sell to a company from outside of the County?” he questioned.
He then motioned to deny selling gravel to the private company. The motion was defeated.
Coun. Darrell Younghans said he felt that that if the County was going to sell the gravel, it should be at a wholesale price. He also asked Jeffery, that if the deal goes through, if it would hurt the business relationship between the company and the County.
"I don't think so," said Jeffery, explaining the company was “in a pinch,” which is why they asked if the matter could be brought before Council.
Coun. Ross Krekoski asked if that “pinch” was related to the procurement of gravel, which Jeffery affirmed it was.
Reeve Glen Ockerman urged for a decision, asking whether they should sell gravel to the private business, which Younghans said the County has done in the past to “help the bottom line.”
"That's what I thought. We've done it in the past," said Coun. Maxine Fodness.
Krekoski moved to allow Grynn Contracting to purchase up to 2,000 tonnes of gravel at $25/tonne. The motion was approved by all councilors, with the exception of Hedrick.
