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TOWN OF NEWCASTLE
REPORT File #
Res. #
By-Law #
MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING
DATE: February 3, 1986
REPORT #: TR-5-86 FILE #:
SUBJECT: TENDER T85-16, NO. 2 DOMESTIC FUEL OIL
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee recommend
to Council the following:
1 . That this report be received for information.
BACKGROUND AND COMMENT:
At the General Purpose and Administration Committee meeting held on Monday, January 20, 1986,
resolution number G.P.A. 84-86 was passed requesting an explanation for recent price
increases for No. 2 Domestic Fuel Oil .
Tenders were publicly advertised and called for the supply and delivery of No. 2 Domestic
Fuel Oil as required by the Town of Newcastle facilities.
The General Conditions of Tender No. T85-16, Schedule A, item 2 reads as follows:
PRICE: Bids shall be submitted on the basis of firm discount to be deducted
from the seller's posted tank wagon price at the time of delivery. Firm discounts
shall remain in effect for the term of the contract, expiring September 1 , 1986.
The successful contractor must document all price increases in writing to the
Town 's Purchasing and Supply Agent for approval at least 15 days prior to the
increase becoming effective.
Should a contractor wish to submit a firm net price per litre of fuel delivered
the amount must be shown in the net price section of the bid form and the
appropriate box should be checked as verification.
Page - 2 -
TR-5-86
TENDER T85-16, NO. 2 DOMESTIC FUEL OIL
When the Tender was awarded, on September 23, 1985, the price per litre was 36.0¢ per
litre, less the discount of 8. 1¢ per litre which leaves the net price as 27.9¢ per litre.
We have since that time received 3 price increases which are as follows :
NET PRICE
Effective December 1 , 1985 28.8¢ per litre
Effective December 24, 1985 29.7¢ per litre
Effective January 21 , 1986 31 .7¢ per litre
Copies of the notification letters received from DX Oil indicating a tank wagon price
increase are attached, (attachments 1 - 3) . Please note that it is the tank wagon price
only that is increased. The discount of 8. 1¢ per litre, which was tendered, remains the
same.
ie. The average homeowner would pay 39.8¢ per litre from DX Oil , 40.9¢ per
litre from Perry Fuels, 40.9¢ per litre from Dixons, 40.9¢ per litre
from Sipco.
As the above figures indicate oil prices throughout are substantially higher than what
we are currently paying.
Upon receipt of each price increase notification, a letter was sent to all participants
in the Tender, advising them of the increase,
After review of the situation , staff feels that DX Oil Company has met all terms and
conditions of Tender T85-16.
Respectfully submitted,
dl/-9
Mr. J. R. Blanchard,
Treasurer.
/hjm
Attachments
DX OIL COMPANY
A division of NATOMAS OF CANADA LTD.
1517 dundas st. east, whitby, ontario, canada
(416) 668-3381 �®
mailing address: post office box 544, oshawa, ontario
L1H 7L9 *petroleum products *wholesale and retail
November 13/1985
The Corp. of the Town of Newcastle
40 Temperance St.
Bowmanville, Ontario
Re: Tender T85-16
Attention: Mrs. Lou Ann Birkett
Purchasing Supply Agent
Please be advised that your price for furnace oil will be
increased from 27.9 to 28.8 cents per litre.
This increase to come into effect December 1/1985 as per
terms of your contract.
Yours y,
EA/1w Ed Aru
DX Oil Company
terminal • oshawa
\t,7iarine
r.inches aja.e • belleville cobourg columbus lindsay newcastle • orillia • oshawa potorborough • pickering • port hope toronto • trenton • whithy
� ) 1
DX OIL COMPANY V
A division of STEVA PETROLEUMS INC.
1517 dundas st. east, whitby, ontario, canada <0>
(416) 668-3381
mailing address: post office box 544, oshawa, ontario
L1H 7L9 .petroleum products .wholesale and retail
pURCNF�S pEV6�RIMENT
December 2/1985
The Corporation of the Town of Newcastle
40 Temperance St.
Bowmanville, Ontario
L1C 3A6
Deal: Sir
p cgs
Please be advised that effective Dec '�' 8& due to an
increase in prevailing tank wagon price, your prices have been
increased as follows;
Fuel Oil 29.7
Yours truly,
Ea/1w Ed Aru
Operations Manager
w terminal •oshawa
o, alaa •belleville •cobourg •cnlumbut •lindsay •newcastle •orillia •oshawa •peterhorough •pickering •oorl hope •toronto °Trenton •whift
DX OIL COMPANY
A division of STEVA PETROLEUMS INC.
1517 dundas st. east, whitby, ontario, Canada
(416) 668-3381
mailing address: post office box 544, oshawa, ontario
L1H 71-9 •petroleum products •wholesale and retail
� I
January 6, 1986
i
The Corpotation of the Town of Newcastle
40 Temperance St.
Bowmanville, Ontario
L1C 3A6
Dear Sir:
Please be advised that effective January 21 , 1986,
due to an increase in prevailing tank wagon prices on
January 6, 1986, your prices have been increased as
follows :
Fuel Oil 31 .7
Yours tr 1 ,
Ed Aru
Ea/pm Operations ITanager
marine wrminal •oshawa
branches:ajax •belleville •cobourg •columhus •lindsav •newca.Nde •orillia •oshawa •peUvborough •pickering •oort hope • torowo •trenton •whitby