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Committee forwards $25 million Western States Oil fuel contract; analysts urge caution on extension options
Summary
The committee forwarded a requirements contract awarding Western States Oil as low bidder with an administrative cap of $25 million; budget analysts and supervisors pressed for more fleet‑usage data and recommended delaying any automatic option extension until more information on biofuels and a possible MTA consortium is available.
The Office of Contract Administration asked the committee to approve a citywide requirements contract with Western States Oil to supply gasoline and diesel under an administrative cap of $25,000,000 for one year, with options. Bill Jones (OCA) said the contract results from a competitive bid and estimated annual fuel expenditures around $25,000,000 and a volume of roughly 9,000,000 gallons.
Supervisor questions and budget‑analyst comments focused on whether the city should authorize the first option year up front, given potential developments: interest by the Metropolitan Transportation Agency in a purchasing consortium and the city's exploration of biodiesel and alternative fuels. Controller and OCA staff said it would be feasible to return to the Board to exercise options and that additional departmental data on fleet size and fuel volumes could be compiled; the committee asked the city administrator and controller to provide that information within weeks.
Several public commenters raised environmental and storage‑safety concerns, citing past fuel spills and asking for records on storage locations, inspections and remediation costs. The committee accepted staff recommendations, asked for additional fleet and volume data, and forwarded the contract to the full Board with recommendation.
