CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 26 Section Name: {{section.name}} Account Number: 72-4671 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 16, 2025
SUBJECT:
Purchase of a Telehandler — Approval
RECOMMENDATION:
Adopt a Resolution to approve an alternative purchasing procedure to award a purchase contract to PAPE Material Handling, Inc. for the purchase of a JLG 1055 Telehandler to facilitate Wastewater Treatment Plant and Field Maintenance operations in the amount of $182,924.27; establish a contingency reserve amount of $7,000; and authorize the Public Works Director to execute the agreement and any change orders within the contingency amount.
BACKGROUND:
The Public Works Field Maintenance Division removes and disposes of material from the City’s sewer collection system at the Wastewater Treatment Plant (WWTP). An eductor was recently put into operation at the WWTP to allow for dumping, drying, and hauling of the sewer collection system materials. The WWTP does not currently have the equipment necessary to move the material from the eductor into a roll-off bin so that it can be hauled away.
During the eductor design phase, it was decided that the cost of a new piece of equipment would be shared by the WWTP and Field Maintenance Divisions. This contract would allow for the purchase of equipment that would be used to move the material and provide other functionality for the WWTP and Field Maintenance Sewer divisions.
As part of the City’s Green Fleet transition, staff consistently explores electric alternatives during the procurement process and aims to procure vehicles with battery electric or alternative-fueled technologies whenever possible. Although the market has electric-powered telehandlers, the telehandler required to facilitate the WWTP and Field Maintenance Divisions’ operations requires a rated capacity of 10,000 pounds, which is a much higher rated capacity than any of the available electric-powered options on the market.
In its search for a telehandler, City staff evaluated prices from Sourcewell selected vendors as well as direct quotes from vendors. Sourcewell is an organization that provides cooperative purchasing by first conducting competitive, public bids then selecting vendors to achieve competitive pricing. Staff was able to locate and evaluate Sourcewell selected vendors.
Staff then reviewed prices for three different brands of telehandlers directly provided by three different vendors. PAPE Material Handling, Inc.’s price for the JLG Telehandler was the lowest priced unit among the directly solicited vendors and Sourcewell selected vendors.
San Mateo Municipal Code Section 3.60.070(h)(3) authorizes the City Council to approve an alternative purchasing procedure when it finds doing so is in the best interest of the City. The purchase of one JLG 1055 Telehandler from PAPE Material Handling is in the best interest of the City because the equipment meets the operational needs of both the WWTP and Field Maintenance divisions, and the price offered is the lowest, even in comparison to pricing offered by vendors associated with Sourcewell.
CITY OF SAN MATEO
Based on the above, staff recommends approval of the purchase contract with PAPE Material Handling, Inc. in an amount of $182,924.27, which is inclusive of the $166,863.64 quoted price plus taxes. Staff also recommends establishing a $7,000 contingency to address any price fluctuations from market instability that may occur between the time the original quote was submitted to the time the contract is executed.
BUDGET IMPACT:
Sufficient funds are budgeted in the Field Maintenance Sewer and WWTP Maintenance operating budgets to fund this purchase and requested contingency amount.
ENVIRONMENTAL DETERMINATION:
Adoption of a Resolution approving this purchase contract is not a project subject to CEQA, because it is a continuing maintenance activity involving the purchase of supplies. (CEQA Guidelines Section 15378(b)(2).) In addition, approval of this purchase contract is exempt from CEQA, in that it can be seen with certainty that there is no possibility that the purchase of a telehandler to move material within the Wastewater Treatment Plant as part of its normal operations and to support the City’s Field Maintenance Divisions may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Purchase Contract
STAFF CONTACT
Robert Learmonth, Wastewater Treatment Plant Manager
[email protected]
650-522-7386