Agenda Item Wording:
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Approve a contract for parts and service - Approve a contract with HAAKER Equipment Company for service, repair, and parts for McNeilus refuse truck bodies, Elgin street sweepers, Vac-Con units, and other HAAKER-supported fleet equipment for an amount not to exceed of $100,000 annually, with an option to renew up to (4) additional one-year terms but not to exceed $500,000 over the term of the contract.
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Agenda Date: 06/15/2026
Prepared by:
Danny Galindo, Public Works Manager, danny.galindo@visalia.gov , 713-4186
Nick Bartsch, Public Works Director, nick.bartsch@visalia.gov ,713-4052
Department Recommendation: Staff recommends that the City Council approve a contract with HAAKER Equipment Company for service, repair, and parts for McNeilus refuse truck bodies, Elgin street sweepers, Vac-Con units, and other HAAKER-supported fleet equipment. The contract shall not exceed $100,000 annually, with an option to renew up to (4) additional one-year terms but not to exceed $500,000 over the term of the contract.
Summary:
The Fleet Division maintains a diverse fleet of specialized equipment utilized by multiple City departments. HAAKER Equipment Company is the regional authorized dealer for McNeilus refuse truck bodies, Elgin Street sweepers, and several other equipment manufacturers represented within the City's fleet. Staff is requesting approval of an annual contract to provide a readily available source for parts, repairs, and technical support to help maintain fleet reliability and reduce equipment downtime.
Background Discussion:
The Fleet Division maintains and repairs equipment utilized throughout the City, including refuse collection vehicles, street sweepers, sewer maintenance equipment, and other specialized fleet assets. Maintaining fleet reliability requires timely access to specialized parts, technical expertise, and repair services to minimize downtime and support uninterrupted City operations.
HAAKER Equipment Company is the regional authorized dealer for McNeilus refuse truck bodies and Elgin street sweepers utilized within the City's fleet. As the authorized dealer, HAAKER provides original equipment manufacturer (OEM) parts, warranty support, technical assistance, and manufacturer-certified repairs for these equipment platforms. Documentation supporting HAAKER's authorized dealer status is included and serves as the basis for the proposed sole-source contract.
In addition to supporting McNeilus and Elgin equipment, HAAKER provides parts and service support for several other equipment manufacturers represented within the City's fleet, including specialized sewer maintenance and vacuum truck equipment. Establishing this contract will provide Fleet staff with an additional authorized service provider capable of supporting multiple equipment types across several City departments. Located in Tulare, they have demonstrated the ability and willingness to service older equipment that is no longer supported by the original manufacturer’s local dealer or service center.
The proposed annual contract amount is based on historical maintenance costs from the City’s existing refuse truck fleet and anticipated future repair needs. For the older fleet, the City incurred average annual maintenance costs of approximately $12,600 per truck in FY 2024-2025. FY 2025-2026 to date, average costs are approximately $7,765 per truck; however, these figures still primarily reflect maintenance trends from the existing fleet and do not yet represent the full lifecycle costs of the newer McNeilus units.
Industry experience and comparable fleet data indicate that maintenance costs increase as vehicles age and major components begin to fail. Significant repairs can be substantial. For example, replacement of packer rams can exceed $10,000, while routine wear items such as arms and associated parts can cost several thousand dollars per occurrence.
While costs for the McNeilus fleet are expected to be lower in the initial years of operation, establishing a budget of approximately $10,000 per truck annually provides a prudent and balanced approach. This estimate accounts for historical fleet experience, anticipated cost escalation over the vehicle lifecycle, inflationary pressures, and the potential for unexpected major repairs.
Approval of this contract will ensure timely repairs, minimize vehicle downtime, and maintain consistent solid waste collection services for the community.
Fiscal Impact including annual maintenance and operating costs:
Expenditures are paid initially out of the Fleet Maintenance Fund. These costs are then charged to the vehicle use department monthly, as incurred.
Prior Council Action:
• 04/26/2026 Purchase (1) Electric McNeilus automated side-loader refuse truck.
• 10/06/2026 Purchase (3) McNeilus front-load refuse trucks.
• 12/16/2024 Purchase (1) Elgin Broom Bager sweeper.
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve an annual contract to HAAKER Equipment Company for McNeilus refuse truck bodies, Elgin street sweepers, Vac-Con units, and other HAAKER-supported fleet equipment. The contract shall not exceed $100,000 annually, with an option to renew up to (4) additional one-year terms but not to exceed $500,000 over the term of the contract.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 06/15/2026
Attachments:
Levine Act
Pricing
Sole source letter
Strategic Goal:
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