Heating Oil Co-opPlan

October 14, 2008, work session
Councilman Metz said that the town was looking into the possibility of creating a heating oil co-op plan similar to the one that was recently started in Cortlandt. He will report back to the board in a couple of weeks. Looking ahead to next year, he said it might also be possible to get other towns interested in a single larger program.

Under the Cortlandt plan, several suppliers have agreed to offer homeowners who join the co-op a discount on a service plan and caps on the price of oil. Basically, the town's only involvement in the program is to supply customers to the oil company. The rest is up to the homeowner and the oil company


October 21, 2008
In response to questions from resident Mara Ziedins regarding the status of the proposed heating oil co-op plan, Councilman Metz said that the plan was moving forward quickly and that he hoped to have some more details available at the board's upcoming October 28th work session. Some companies have already agreed to participate in the program and he is trying to get more to sign on


October 28, 2008, work session
Councilman Metz provided some additional information and a draft document regarding the planned heating oil co-op that is being modeled after the recently adopted Cortlandt plan. Residents would pay a $5 fee to sign up. Mr. Metz envisioned that as soon as the details were worked out, the town would set aside a Saturday for signing up. Still to be worked out is language regarding how the price is to be capped. (There are at least two possible benchmarks that can be used.)

Mr. Metz explained that he had been unsuccessful in getting the participating companies to eliminate the 150 gallon minimum purchase or to be more specific about the “reduced rate” for a service contract. All sales will be C.O.D. (cash on delivery). Membership in the co-op will only be open to residents, not commercial establishments.

Resident Serafina Mastro, owner of Reliable Oil, the only oil company in Yorktown, expressed some reservations about the program noting how difficult it would be for homeowners to obtain the information that will be used to set the cap. She wondered if the additional paperwork that would fall to the town was worth the effort, especially as homeowners were already “shopping around” for the best price; she noted that she typically gets about 25 calls a day from comparison shoppers. She added that it was also important for homeowners to know the cost of a service contract and factor that in to a total package.

Mr. Metz said he would be working with Supervisor Don Peters's assistant, Kelly O'Dell, to pin down some remaining points and will get back to the board, probably at the next work session, to review the plan again.


November 18, 2008
Councilman Matt Metz announced that 80 homeowners had signed up so far to participate in the group. The town will hold another sign up session on November 24th, between 7-10pm in the conference room in town hall. Homeowners can also sign up at any time with Kelly O'Dell in the supervisor's office.

Mr. Metz said the co-op price will be approximately 40 cents above the wholesale rate and that the suppliers will offer a discount on a service plan. He noted that last week, the co-op price was $2.30/gallon. The wholesale rate, which fluctuates, can be found on Bloomberg.com.


January 5, 2010

Supervisor Siegel reminded residents about the Town’s Heating Oil Coop.  The program currently works with 4 – 5 vendors and costs residents $5 to join.  Oil is priced at $.40 above wholesale.  Anyone interested in participating should contact David Humphrey in the Supervisor’s office.

 

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