CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 26-11478 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: August 17, 2026
SUBJECT:
Purchase of Diesel Fuel for the Wastewater Treatment Plant — Agreement RECOMMENDATION:
Approve an agreement with Bosco Oil, Inc. dba Valley Oil Company for the emergency procurement and delivery of diesel fuel to the Wastewater Treatment Plant in the amount of $256,109.61; and ratify execution of the agreement by the City Manager.
BACKGROUND:
On April 11, 2026, the old Wastewater Treatment Plant’s (WWTP) 25 kilovolt switch gear failed, resulting in a complete loss of electrical power to the WWTP. The loss of power necessitated the use of seven emergency generators to supply the WWTP with electricity to allow the continued processing of wastewater. Replacement and repair of the switch gear took approximately two weeks to complete due to difficulty in sourcing replacement parts. Sundt Construction, Inc., the on-site contractor currently constructing the upgrade and expansion of the WWTP, was able to use their considerable resources to assist WWTP staff in locating replacement parts which were then installed by the WWTP’s electrical contractor.
During this time, the extended runtime of the emergency generators required multiple deliveries of diesel fuel to keep the generators running 24 hours a day, resulting in invoices totaling $256,109.61. The additional diesel fuel demand exceeded the Facilities and Fleet Services Division’s $200,000 annual budget for Citywide diesel fuel procurement and supply from Bosco Oil, Inc. dba Valley Oil Company (Valley Oil), necessitating a separate agreement for diesel fuel purchase for the WWTP.
San Mateo Municipal Code Section 3.60.050(a) is an exception to the City’s purchasing procedures where any emergency exists affecting or threatening to affect the public health, safety, or welfare. Here, the WWTP processes approximately nine million gallons of wastewater on a typical day and any loss of ability to treat wastewater for any significant period of time poses a serious risk to the public health. In order to maintain the public health, the City Manager approved an emergency use authorization to proceed with an agreement with Valley Oil to procure fuel delivery for the seven emergency generators in order to keep the WWTP operating. This also allowed the City’s other facilities to continue purchasing needed fuel from Valley Oil under the Citywide agreement in order to ensure uninterrupted operations and prevent delays. Due to the amount of the agreement, Staff is now requesting after-the-fact approval of the agreement with Valley Oil from City Council as an emergency procurement.
BUDGET IMPACT:
There are sufficient funds in the Wastewater Treatment Plant’s operating budget to fund these costs.
CITY OF SAN MATEO
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ENVIRONMENTAL DETERMINATION:
Approval of this agreement is categorically exempt from CEQA as an “existing facility,” because the purchase of diesel fuel for emergency generators at the WWTP consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)
STRATEGIC PLAN ALIGNMENT
This staff report supports the Organizational Health and Good Governance initiative.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Agreement
STAFF CONTACT
Robert Learmonth, Wastewater Treatment Plant Manager
[email protected]
(650) 522-7386