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HomeMy WebLinkAboutTR-5-86 U � > 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