Title
Recommendation to Authorize $100,000 in Additional Expenditures with WEX Inc. for Temporary Fleet Fueling Services During the Underground Storage Tank Replacement Project at the Maintenance Service Center, for a Total Amount Not-to-Exceed $415,000. (Public Works 60141580)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
On September 16, 2025, City Council approved an agreement with WEX Inc. (WEX) to provide temporary fleet fueling services while the underground fuel storage tanks at the Maintenance Service Center (MSC) were replaced. The WEX program allowed City of Alameda (City) vehicles to fuel at a wide network of retail stations in the City and throughout the Bay Area, with transaction-level reporting and purchase controls to ensure accountability. At that time, staff estimated expenditures of approximately $315,000 over a six-month period based on historical fuel consumption, projected retail fuel prices, and a contingency allowance.
The fuel system replacement project was completed in June 2026, and WEX services are no longer being utilized. However, due to sharp increases in fuel prices and an extended construction period, actual expenditures exceeded the previously authorized amount. Staff recommends retroactive authorization to increase the expenditure limit by $100,000, bringing the total authorized amount to not exceed $415,000. This action is required for proper financial documentation and audit purposes. No budget amendment is required, as sufficient appropriations have already been authorized.
BACKGROUND
The MSC fueling station serves most municipal departments, including Police, Alameda Municipal Power, Public Works, and Recreation and Parks, and supports emergency generators. On November 19, 2024, City Council approved an agreement with Hunt and Sons, LLC (Hunt and Sons) for the delivery of unleaded and diesel fuels to City fueling stations, including the MSC and Fire Stat...
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