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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: MARCH 25, 2025
FROM: FINANCE DEPARTMENT
SUBJECT: RATIFY EMERGENCY PURCHASE ORDER WITH TEREX USA,
LLC TO REPAIR A PUBLIC UTILITIES ELECTRIC
OPERATIONS LINE TRUCK
ATTACHMENT (Y/N): YES ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, ratify emergency purchase order with Terex USA, LLC, Fontana, California, in the amount of $153,841.94, to repair an Anaheim Public Utilities Electric Operations line truck that sustained significant damage while performing electrical operations.
DISCUSSION:
On November 7, 2022, an Anaheim Public Utilities line truck tipped over onto its side while lifting a large transformer at the Edwards Utility Complex yard. This specialized vehicle is critical to daily operations, as it is used for digging and setting power poles, lifting and installing transformers, and pulling in both overhead and underground wires.
To ensure uninterrupted electric service to Anaheim customers, the truck needed to be repaired and restored to working order as soon as possible.
Terex USA, LLC (“Terex”) is the original equipment manufacturer of the truck’s lifting mechanism and components, and repairs had to be conducted at an authorized Terex service center to maintain compliance with manufacturer safety and performance standards. Factory-trained technicians performed the work using genuine manufacturer- approved parts, which come with a one-year warranty, ensuring safety, reliability, and longevity of the vehicle. To ensure competitive pricing and compliance with procurement policies, the repairs were procured through a cooperative contract.
Given the urgency of returning the truck to service and the unknown extent of damage at the time, the City proceeded without a comprehensive cost estimate, recognizing that additional repairs might be required as the work progressed. During the disassembly and inspection process, internal damage beyond the initial assessment was identified, necessitating further repairs. The truck’s boom sustained damage in three separate areas, and after careful evaluation, replacing the entire boom assembly was determined to be the most cost-effective solution, avoiding costly individual component repairs. However, the assembly was not immediately available.
Ratify Emergency Purchase Order with Terex USA, LLC to repair a Public Utilities Electric Operations Line Truck March 25, 2025
Due to the specialized nature of heavy-duty utility vehicle repairs, certain replacement parts had to be custom manufactured, resulting in delays. Additional custom parts were ordered in April 2023 and received by Terex in January 2024, requiring approximately nine months for delivery. Labor time was also extended as several undamaged brackets and pulleys had to be carefully removed from the old boom and transferred to the new assembly to further reduce costs. The repairs were completed, and the vehicle was delivered to the fleet maintenance yard in mid-December 2024.
Upon receiving the finalized requisition in February 2025, the Central Purchasing Office determined that the total cost exceeded the $100,000 Council approval threshold.
Therefore, City Council approval is now requested to ratify the purchase order to Terex, in the amount of $153,841.94, The proposed purchase order is fully compliant with City Council Policy 4.0 and purchasing regulations.
IMPACT ON BUDGET:
Sufficient funds are available in the Public Utilities Electric Utility Fund Fiscal Year’s 2024/25 Budget.
Respectfully submitted, Concurred by,
Kari Bouffard Rudy Emami
Purchasing Agent Public Works Director
Attachment:
1. Terex USA, LLC Invoice 7500672