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San Francisco finance committee approves $18.7M extension for renewable diesel contract

November 29, 2023 | San Francisco County, California


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San Francisco finance committee approves $18.7M extension for renewable diesel contract
In a recent San Francisco County government meeting, significant discussions centered around the expansion of open space in Mission Bay and a crucial amendment to the city’s renewable diesel contract. These topics highlight the county's ongoing efforts to enhance community resources and manage environmental sustainability.

The meeting opened with a discussion about the Mission Bay project, which will ultimately provide approximately 40 acres of open space. This initiative is part of a broader strategy to improve public access to green areas in urban settings, addressing the growing demand for recreational spaces in densely populated neighborhoods. The committee expressed enthusiasm for the project, emphasizing its potential benefits for community well-being.

Following this, the committee reviewed a resolution to amend the existing contract with Golden Gate Petroleum for the purchase of renewable diesel. The proposed amendment seeks to increase the contract amount by $18.7 million, raising the total to approximately $86.7 million, and extending the contract duration by five months, until October 2024. This adjustment is necessary due to rising diesel prices and increased consumption by city departments, including the Municipal Transportation Agency and the Fire Department.

Mark Farley from the Office of Contract Administration explained that the contract was initially awarded in December 2018 and has undergone two previous amendments. The recent spike in diesel expenditures, from $11 million in earlier fiscal years to nearly $19 million in the last year, reflects the volatility in the oil market. The committee acknowledged the need for this amendment to ensure that city operations continue smoothly without interruption.

The meeting concluded with a positive recommendation to forward both items to the full board for approval. The discussions underscored the county's commitment to enhancing public spaces while also navigating the complexities of sustainable fuel procurement. As these initiatives move forward, they are expected to have lasting impacts on both the environment and the quality of life for San Francisco residents.

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