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Committee backs lower spending cap for city gasoline contract after analyst review
Summary
The Budget and Finance Committee moved to forward a three‑year fuel contract with Western States Oil to the full Board with a recommendation reflecting the Budget Legislative Analyst's suggested $32 million not‑to‑exceed cap instead of the department's $40 million administrative ceiling.
President Cohen and staff considered a proposed three‑year contract with Western States Oil to supply gasoline for San Francisco’s city fleet. Department staff described the contract as limited to gasoline purchases and said the $40 million not‑to‑exceed amount was an administrative hedge against future price or consumption spikes.
Sevin Campbell of the Budget Legislative Analyst’s office recommended reducing the not‑to‑exceed figure to $32,000,000 based on current usage and an expected shift to lower‑fuel or zero‑emission vehicles. Campbell said the recommendation reflects actual consumption with an allowance for gasoline price escalation.
Department representatives including Alaric and Dean Raffenried told the committee they understand the BLA’s estimate but prefer the $40,000,000 ceiling to avoid returning to the Board if fuel prices or consumption unexpectedly rise. “If we would exceed $32,000,000 at that time, we would have to come back before the board and ask for that contract to be amended up,” staff said; they described the larger ceiling as an administrative safeguard.
A public commenter urged tighter checks on city vehicle personal use and recommended solar‑powered charging for electric vehicles to reduce utility costs.
President Cohen moved to accept the Budget Legislative Analyst’s recommendation and to forward the item to the full Board with a positive recommendation; the committee took that action without objection.
