Title
Recommendation to Authorize the City Manager to Execute an Agreement with WEX Inc. for Temporary Fleet Fueling Services During the Underground Storage Tank Replacement Project at the Maintenance Service Center in an Amount Not-to-Exceed $315,000; and
Adoption of a Resolution Amending the Fiscal Year 2025-26 Budget to Increase Authorized Expenditures in the Fleet Fund Operating Budget (60141580) by $50,000. (Public Works 60141580)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) is replacing the aging underground fuel storage tanks (UST) at the Maintenance Service Center (MSC) to comply with State requirements to close all single-walled USTs by December 31, 2025. This work will take the MSC fueling station offline for approximately six months, beginning in late September early October 2025.
To maintain uninterrupted fueling for City fleet vehicles during construction, staff recommends a temporary fueling agreement with WEX Inc. (WEX), a nationwide government fuel card provider. Terms and conditions are based on Wex's Sourcewell Agreement 030625-WEX. The City is an active member of Sourcewell, a national purchasing agency, whose cooperative purchasing agreements have been competitively solicited in conformance with state and local purchasing requirements.
The WEX program will allow 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. The proposed not-to-exceed amount of $315,000 is based on the most recent six-month average fuel consumption at MSC, current Bay Area fuel prices, and a 10% contingency. Only fuel pumped will be billed and the not-to-exceed amount is not a guarantee of usage. Because retail prices are higher than the City's wholesale rates from Hunt & Sons, the City's wholesale fuel delivery service provider, staff estim...
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