CC Resolution 13213 - Purchase Order with Terex Financial Services RESOLUTION NO. 13213
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL: 1)
AUTHORIZING THE EXECUTION OF A PURCHASE ORDER WITH TEREX
FINANCIAL SERVICES, IN THE AMOUNT OF $34,410, FOR THE PROCUREMENT
OF ONE (1) FORD F-650 CHASSIS (TRUCK) EQUIPPED WITH AN LT-40 AERIAL
LIFT DEVICE FROM TEREX UTILITIES, BY WAY OF THE CITY'S MEMBERSHIP
WITH SOURCEWELL (A COOPERATIVE PURCHASING FIRM) AND THE BIDDING
EXEMPTIONS SPECIFIED IN CAMPBELL MUNICIPAL CODE SECTION 3.20.30(6),
AS PROGRAMMED IN THE APPROVED PUBLIC WORKS VEHICLE AND
EQUIPMENT MAINTENANCE OPERATING BUDGET FOR FY 25; AND 2)
APPROVING THE ISSUANCE OF SUBSEQUENT PURCHASE ORDERS FOR FIVE
(5) ADDITIONAL YEARS, IN THE TOTAL AMOUNT OF $344,110, FOR THEIR
ASSOCIATED LEASING COSTS OVER A FIVE-YEAR TERM.
WHEREAS, the Public Works Department— Maintenance Division plans, schedules, and
budgets for the maintenance and replacement of the City's fleet vehicles, including three
diesel-powered trucks; and
WHEREAS, one of these diesel vehicles, a Ford F-650 aerial lift(boom) truck, is operated
by the division's Signals and Lighting crew for servicing elevated fixtures throughout the
City; and
WHEREAS, manufactured by Ford in 2000 and purchased by the City that same year,
the truck is powered by a Cummins 5.9L diesel engine and equipped with an aerial bucket
lift that enables staff to service the City's streetlights, poles, traffic signs, and signalized
intersections, and for decorative tree lighting or other types of exhibits displayed during
seasonal events or special occasions; and
WHEREAS, while the truck remains in operation after 24 years of service, the lift bucket
is outdated and lacks the modern technology and safety features found in newer lift
devices; and
WHEREAS, operating the truck's diesel engine has become increasingly challenging due
to various carbon emissions laws passed by the State in recent years — including the
California Clean Idle Law which prohibits diesel-powered vehicles or equipment from
idling for more than five minutes while stationary; and
WHEREAS, in 2022, the law was expanded to include all diesel vehicles manufactured
before 2010 with a gross vehicle weight of 14,000 pounds or more, thereby restricting
staff's ability to operate the bucket lift as it requires the truck's engine to remain running
while in use; and
WHEREAS, staff began exploring retrofitting and replacement options to ensure the
truck's compliance with State regulations; and
WHEREAS, in 2022, staff reached out to Terex Financial (Terex), a company the City
had recently partnered with for the purchase of a smaller aerial truck, to inquire about
available vehicles, aerial lift equipment, and financing options; and
WHEREAS, Terex responded by providing specifications for a Ford F-650 truck chassis
fitted with their LT-40 aerial lift device — a fully electric lift equipped with its own plug-in
power source to eliminate the need for the truck's engine to remain on while in use; and
WHEREAS, Terex's membership with Sourcewell, a cooperative purchasing firm,
enables the City to bypass its formal bidding procedures as outlined in Campbell
Municipal Code Section 3.20.30(6), for the procurement of goods and services from pre-
qualified vendors who have been vetted in accordance with industry standards for
government agencies; and
WHEREAS, in August 2024, Terex Financial submitted a capital lease proposal with the
following purchase options for the City's consideration: 1) a one-time payment of
$297,371 to purchase the lift truck outright, or 2) lease the lift truck over a five-year (60-
month) term, with no down payment due at signing, and a fixed monthly payment
($5,735.20) activated only upon delivery of the vehicle; and
WHEREAS, with $75,000 allocated for heavy-duty equipment and vehicle lease
expenses in the approved FY 25 Public Works Vehicle and Equipment Maintenance
Operating Budget, the proposed leasing plan with the $1.00 capital buyout option is the
most cost-effective option for the City at this time; and
WHEREAS, upon delivery of the new vehicle, the City's current lift truck will be
decommissioned and sold at auction — with funds to be returned to the balance of the
City's Motor Vehicle Pool Fund to help offset these leasing costs or fund other
maintenance and service expenses; and
WHEREAS, staff is requesting City Council's authorization to execute a purchase order
with Terex Financial, in the amount of $34,410, to procure one (1) Ford F-650 truck
chassis equipped with an LT-40 aerial lift device from Terex Utilities, through the City's
membership with Sourcewell, and as programmed the approved Public Works Vehicle
and Equipment Maintenance Operating Budget (641.750.7884) for FY 25; and
WHEREAS, sufficient funds are available in the approved Public Works Vehicle and
Equipment Maintenance Operating Budget to begin payments upon the vehicle's delivery
in FY 25; and
WHEREAS, staff is also requesting City Council's approval to issue subsequent purchase
orders for five (5) additional years, in the total amount of$344,110, for all financing costs
through that five-year term; and
WHEREAS, staff will ensure sufficient funds are programmed each fiscal year in the City's
Operating Budget to cover the annual leasing costs of approximately $68,822 over the
next four (4) years (FY 26, 27, 28, and 29), $34,410 in FY 30, and the $1.00 due at the
end of those terms to secure the City's ownership of the vehicle in accordance with the
agreement's buyout option.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell
hereby: approves 1) the execution of a purchase order with Terex Financial Services, in
the amount of$34,410, for the procurement of one (1) Ford F-650 truck chassis equipped
with an LT-40 aerial lift device from Terex Utilities, by way of the City's membership with
Sourcewell (a Cooperative Purchasing Firm) and the bidding exemptions specified in
Campbell Municipal Code Section 3.20.30(6), as programmed the approved Public Works
Vehicle and Equipment Maintenance Operating Budget (641.750.7884) for FY 25, and 2)
approves the issuance of subsequent purchase orders for five (5) additional years, in the
total amount of$344,110, for their associated leasing costs over a five-year term.
PASSED AND ADOPTED this 1st day of October, 2024, by the following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: Scozzola
APPROVED:
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Susan M. Landry, yor
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Andrea Sanders; ' ity Clerk
301 Merritt 7, 4th Floor
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303-517-8173
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CAPITAL LEASE PROPOSAL Date: 9/11/2024
Terex Financial Services, Inc. (TFS) in conjunction with Terex Utilities is pleased to present the following proposal for
your review. This proposal, supersedes all prior written or oral proposals and discussions, is offered for discussion
purposes only.
LESSEE: City of Campbell, California
EQUIPMENT: New Terex LT40 per QU31652
OEC: $297,371
STRUCTURE: Capital lease with$1.00 buyout
TERM(Months): 60
PAYMENT FACTOR*: .019286
MONTHLY PAYMENT: $5,735.20(billed in arrears)
END OF LEASE OPTIONS: 1) Purchase for$1.00
2) Continue to lease month to month
3) Renew lease for extended period
4) Return to TFS per terms of lease
FLOAT TO FUND: The pricing is based on certain assumptions with regards to TFS'current borrowing costs,
market conditions and a spread from the swap Rate as that most closely approximates
the initial term. The rate(s) will be adjusted if any of the above variables used in
determining this proposed pricing differs at time of funding.
DOCUMENTATION FEES: $350.00 Per Schedule
EXPIRATION: Proposal is Valid for 30 Days
Thank you for the opportunity to present this confidential Proposal. If you have any questions, please do not hesitate
to call.
Sincerely,
Evan Harvie
Terex Financial Services, Inc.
By Title Date
Please indicate approval of the terms contained herein by circling the desired term and signing above and returning this
Proposal to evan.harvie@terex.com.
THIS IS A NON-BINDING PROPOSAL AND NEITHER CUSTOMER NOR ANY OTHER PERSON SHOULD RELY
UPON IT IN TAKING OR FORBEARING FROM TAKING ANY ACTION OR ADVANCING ANY CREDIT
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