Agenda Item Wording:
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Approve purchase of solid waste pilot electric truck - Approve the purchase of one 2025 model year solid waste electric residential side loader demonstrator truck from Haaker, Inc. through the Sourcewell Cooperative in the amount of $876,368.58 and appropriate $876,368.58 from the Solid Waste Enterprise Fund.
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Agenda Date: 04/06/2026
Prepared by: Jason Serpa, Public Works Manager, 713-4533, jason.serpa@visalia.city; Nick Bartsch, Public Works Director, 713-4052, nick.bartsch@visalia.city
Department Recommendation: Staff recommends that Council approve the purchase of one 2025 model year solid waste electric residential side loader demonstrator truck from Haaker, Inc. in the amount of $876,368.58 and appropriate $876,368.58 from the Solid Waste Enterprise Fund.
Summary:
Staff are recommending the purchase of an all-electric 2025 model year McNeilus Volterra solid waste demonstrator side loader truck. After extensive research and comparisons of capable models, including reference work of other operators in California, staff is confident in the performance of the electric truck and its ability to do the work of the City’s standard internal combustion alternatives. Coupled with the available incentives from the Air Board and HVIP to lower the upfront capital cost, the timing is optimal to purchase and pilot this all-electric model. The fact that the truck could be repaired in Tulare as needed, is also an asset.
Background Discussion:
The State of California and the California Air Resources Board have mandated that State and local agencies begin converting their heavy-duty fleets to zero-emission beginning January 1, 2024. Currently, there are two effective options, battery-electric and hydrogen fuel cell vehicles. Unfortunately, low-emission Compressed Natural Gas (CNG) does not qualify towards meeting the mandated regulation. Due to the lack of hydrogen fuel-cell vehicles entering the market, battery-electric technology is currently the only commercially available and logistically feasible option in the market today. City staff recognize the immediate need to pilot an electric solid waste truck for a long-term benefit of testing, while also developing a possible strategy and pathway to successfully satisfy the Advanced Clean Fleets (ACF) requirements.
Historically, the City of Visalia Solid Waste Division has procured a mix of CNG and diesel fueled vehicles to replace or grow the solid waste fleet. Due to the zero-emission regulations in the State of California, the City began the process of researching alternative fuel vehicles, and subsequently, the viability and affordability of purchasing an electric solid waste truck. Staff took the approach of studying various types of electric truck products available for sale, then coming to a recommendation based on the performance and future ownership costs of the vehicle.
After reviewing products from multiple battery-electric truck manufacturers and being able to demo several trucks on the City’s routes, one manufacturer performed better than its competitors. Due to the ease of operation, purpose-built design for reduced maintenance and equipment longevity, and perhaps most importantly, battery efficiency, the McNeilus/Volterra is the preferred and recommended option, having the ability to perform the same duties as the City’s current internal combustion-powered equipment.
With any new technology or product, there is a need to do due diligence by contacting other cities and private operators that are running the specific electric truck product staff is considering. Additionally, the specific truck under consideration was tested for 2 full days onsite so that Solid Waste staff along with Fleet Maintenance personnel could weigh in on the truck’s capabilities and/or drawbacks.
Even through initially testing new electric truck technology and getting good references, staff understand that with any new technology, extended testing, specific to the City of Visalia and its solid waste operation, is most valuable before a more extensive investment of converting the entire fleet and installing charging infrastructure is made. This is why staff is proposing a pilot as the best option. The pilot would purchase one truck, put that truck into service, and observe the compatibility and comparability of operational costs. Subsequent purchases would then be evaluated and considered upon the successful performance of the pilot truck.
Fiscal Impact including annual maintenance and operating costs:
After the selective process of choosing an electric model that could take the place of one of the City’s CNG equivalents, staff recommend the McNeilus Volterra. This truck had the most upside in range, capacity, and good references (See previously given presentation attached). In addition, having a local dealer in Tulare, CA was a positive for support contact and warranty parts and repairs, if needed.
Haaker, Inc. is the McNeilus dealer in the area and is able to extend pricing according to a Sourcewell Cooperative contract (Contract# 110223-MCN). Sourcewell Cooperative Purchasing helps the City save time and money by purchasing from ready-to-use, competitively solicited contracts. Cooperative Purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units,” as defined by the American Bar Association Model Procurement Code for State and Local Governments. Sourcewell streamlines the purchasing process by developing Requests for Purchase for national competitive solicitations that meet or exceed local requirements.
The electric truck pilot will be an addition to the fleet as a growth vehicle and take the place of one of the two growth vehicles that staff is planning to take to Council before the end of FY25/26. Even though this electric truck will serve as a pilot program, staff feels that it is capable enough to be an addition to the fleet and can help in savings by taking the place of an already planned growth vehicle.
Staff was also given the option of purchasing a brand new 2026 model year truck or an identical demonstrator 2025 model year truck with 1,781 miles on the odometer. Because the trucks were identical, staff has chosen to recommend the 2025 demo truck for less cost.
The cost breakdown of the demo truck and additional equipment is below, along with the appropriation needed for this purchase to Haaker, Inc., the local McNeilus dealer.
City staff was also able to obtain an HVIP grant (Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project) in the amount of $150,000 which will be issued as a reimbursement after the initial purchase. There is also a possibility of being able to stack an additional Air Board Truck Replacement Program grant (which the City has already qualified and contracted for) in the amount of $120,832, dependent on the type of funding we receive from HVIP. Even though these amounts are a cost reduction to the initial capital needed to purchase the electric truck, the appropriation amount above is not inclusive of the reductions since they are considered reimbursements.
CNG versus Electric:
Even though the initial capital investment of a battery-electric-powered truck is greater than its CNG-powered equivalent that the City is accustomed to purchasing, staff have prepared a side-by-side comparison of the expected 10-year life costs of the electric-powered options compared to the City’s typical internal combustion-powered natural gas vehicle. As seen below, the initial capital to purchase the electric truck is higher, but the electric truck does make strides in payback by year ten (in accordance with the City’s current vehicle replacement schedule), achieving an anticipated near equal total cost of ownership, with maintenance and fuel being the greatest in contrast. Staff would like to note that due to State requirements, diesel trucks are no longer considered a viable option to purchase and will be unavailable in the future, so it is not considered in the comparisons below.
*For details on the assumptions made to make the above comparison, please see the pilot presentation attached to this staff report.
**Only one grant amount is shown as a cost reduction in the figure above. An additional $120,832 may reduce the electric price if the grant is stackable after the HVIP voucher is issued to the City.
Even though staff is recommending the purchase of an identical 2025 model year demonstrator electric truck with 1,781 miles, the new 2026 model year purchase truck option and price are also listed in the comparison above and given as an alternative buying option and motion below. The new 2026 electric McNeilus Volterra would be an additional $83,135.97. Both model year trucks are identical in equipment and technology.
Prior Council Action: Council has approved Diesel and CNG truck purchases in the past for budgeted replacements and growth vehicles.
Alternatives: Alternative #1: To not approve the purchase of a pilot solid waste electric truck. Alternative #2: (if Council chooses to alternatively purchase the new electric McNeilus Volterra): I move to approve the purchase of a new electric pilot 2026 model year solid waste residential side loader truck from Haaker, Inc. through the Sourcewell Cooperative in the amount of $959,504.55 and appropriate $959,504.55 from the Solid Waste Enterprise Fund.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve the purchase of an electric pilot 2025 model year solid waste residential side loader demo truck from Haaker, Inc. through the Sourcewell Cooperative in the amount of $876,368.58 and appropriate $876,368.58 from the Solid Waste Enterprise Fund.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 04/06/2026
Attachments: Vehicle Authorization Form, McNeilus Sourcewell Contract, Sourcewell Pricing Quote - Demo Truck, Sourcewell Pricing Quote - New Truck, Electric Pilot Truck Presentation, Electric Pilot Truck Presentation Staff Report
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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