CC Resolution 12941 -Purchase of five new Ford VehiclesRESOLUTION NO. 12941
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING THE PURCHASE OF FIVE NEW FORD INTERCEPTOR UTILITY
VEHICLES FROM FOLSOM LAKE FORD, IN AN AMOUNT NOT TO EXCEED
$382,400, BY WAY OF THE CALIFORNIA STATE e-PROCUREMENT CONTRACT;
AND AUTHORIZING A BUDGET ADJUSTMENT
WHEREAS, On June 15, 2021, the City Council approved Resolution No. 12736,
authorizing the procurement of five (5) new marked patrol cars, funded by the City's FY
2022 Operating Budget, with use of the California State e-Procurement Contract to
finance the purchase through Ford Credit Municipal Finance (FCMF) over the terms of a
5-year lease; and
WHEREAS, per the terms of the agreement and pricing provided by FCMF at the time,
the City would pay an amount not -to -exceed $81,713 annually, at an interest rate of 4.4%,
for a total cost of $408,565 over five years; and
WHEREAS, upon Council's approval, staff placed the order for the five vehicles with
Folsom Lake Ford, by way of the California State e-Procurement Contract and discounts
offered to agencies using the contract for procurement of goods and/or services; and
WHEREAS, staff was aware that regardless of manufacturing delays, the financing terms
with FCMF would also be subject to change (re -calculated) pending significant economic
developments between time of order and eventual delivery of the vehicles; and
WHEREAS, the City would commence payments under any new rates and terms issued
by FCMF in effect at the time of delivery; and
WHEREAS, the revised five-year financing plan offered by FCMF displayed a significant
increase in the annual interest rate (4.4% to 8.04%) and overall cost differential at the
end of the five-year term ($408,565 to $444,335); and
WHEREAS, to avoid the payment of additional financing charges resulting from the
updated financing terms provided by FCMF, staff is now recommending the outright
purchase of the five police vehicles from Folsom Lake Ford, in an amount not to exceed
$382,400, by way of the California State e-Procurement Contract and updated pricing
provided to the City; and
WHEREAS, funding up to $75,000 is available and planned for in the FY 2023 Adopted
Budget for the Motor Pool Fund (Fund 641) and the remaining $307,400 can be supported
by the General Fund (Fund 101) via a budget adjustment; and
WHEREAS, for this to occur, the City Council must grant authorization for a budget
adjustment reflecting the updated purchasing strategy proposed by staff.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell
approves the outright purchase of five (5) new Ford Interceptor Utility Vehicles from
Folsom Lake Ford, in an amount not to exceed $382,400, by way of the City's
procurement through the California State e-Procurement Contract, and updated pricing
provided by Folsom Lake Ford.
BE IT FURTHER RESOLVED that the City Council hereby authorizes a budget
adjustment to proceed with the outright purchase of the five new police vehicles from
Folsom Lake Ford (as opposed to the original five-year financing plan offered by FCMF),
funded by the one-time use of the City's General Fund and Motor Pool Fund for the related
purchase.
PASSED AND ADOPTED this 21 sc day of February 2023, by the following roll call vote:
AYES: Councilmembers: Lopez, Scozzola, Furtado, Landry, Bybee
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
Anne Bybee, Mayor
ATTEST:
Andrea Sa rs, City Clerk