Carlow Mayo council accepts recommendation for fuel tanks

·3 min read

Based upon the recommendation of Carlow Mayo Township public works manager John Mayhew at their March 15 meeting, the township council voted to accept the Request for Quotation from W.O. Stinson and Sons Ltd. to provide two fuel tanks to the township for bulk diesel and bench oil storage. Mayhew and clerk and treasurer Jenny Snider comment on this successful RFQ.

At their March 15 meeting, Carlow Mayo Township council voted to accept Mayhew’s recommendation to accept the RFQ from W.O. Stinson and Sons Ltd. to provide a bulk clear diesel storage tank and a bench style bulk oil tank from their loan program.

Mayhew explained in his report the reasoning behind this recommendation;

“Even though Stinson’s is slightly higher priced per litre in bulk clear diesel ($.04) and in bulk oil ($.38) than MacEwen’s, the township would have to buy two tanks, the township would have to buy two tanks, one for bulk 15w40 and one for hydraulic 32, at a cost of $2,850 plus HST each ($5,700). We would have to purchase 15,000 litres of bulk 15w40 oil and 925 litres of hydraulic 32 oil before we would see savings in bulk oils,” he says.

At the Feb. 14 meeting, council instructed Mayhew to ask three companies for quotes regarding bulk fuel and oil pricing and tank rental/loan contracts. He did so, and these were the three quotes he got back;

W.O. Stinson and Sons Ltd. offered a $9.98 plus HST per month rental that includes pump, hose and nozzle, which will be maintained by Stinsons, they will also supply the split bulk oil tank, bench style at no additional charge (for motor oil and hydraulic oil) and the township is not locked into a contract. The township gets 20 per cent off any packaged products like grease or gear oil, and the bulk hydraulic 32 is priced at $3.07 per litre, while the bulk 15w40 is priced at $4.76 per litre.

MacEwen Petroleum had no rental charge on the bulk fuel tank, but the township would have to buy a bulk oil tank and hydraulic oil tank at $2,850 plus HST each, or supply bulk oil by the barrel, requiring an order of four barrels. The hydraulic 32 oil was priced at $3.08 per litre, while the 15w40 motor oil was priced at $5.53 per litre. The township would get a five per cent discount on packaged products, and the barrel pricing came in at $5.53 per litre, while the bulk pricing was $4.38 per litre.

Ultramar had no rental charge on the bulk fuel tank but did require a five-year contract with the township. They were unable to supply the bulk oil tank so the bulk oil would be supplied by barrel or in pails. The hydraulic 32 oil was priced at $80.14 per pail with a 24 pail minimum order for delivery. The motor oil, 15w40, was priced at $1170.83 per drum, with a two drum minimum order for delivery.

All tanks provided by the above bidders are double wall, vacuum monitored and ULC regulated.

Snider told The Bancroft Times on March 15 that Mayhew will be meeting with the rep from Stinson for site inspection and location and once the tanks are delivered, they will have the electrician hook them up.

Mayhew thought it was great that council accepted his recommendation.

“It will be really convenient to have fuel right at the garage and every dollar saved will help the tax rate.”

Michael Riley, Local Journalism Initiative Reporter, The Bancroft Times