Agenda Item Wording:
title
Approve a contract for parts and service - Authorize the City Manager to award an annual contract to Wastebuilt Environmental Solutions for service, repair, and parts for AMREP refuse truck bodies for a not to exceed amount of $100,000 annually, with an option to renew annually for 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: 04/20/2026
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 authorize the City Manager to award an annual contract to Wastebuilt Environmental Solutions, LLC for service, repair, and parts for AMREP refuse truck bodies. The contract shall not exceed $100,000 annually, with an option to renew annually for up to (4) additional one-year terms but not to exceed $500,000 over the term of the contract.
Summary:
The Solid Waste Division currently operates over 10 automated residential refuse trucks that require ongoing parts and service. Wastebuilt Environmental Solutions, LLC is the regional authorized dealer and has provided a sole-source letter from AMREP. Staff is requesting an annual contract for parts and services provided by Wastebuilt Environmental Solutions, LLC.
Background Discussion:
The City of Visalia operates over 60 refuse truck bodies from multiple manufacturers. Maintaining fleet reliability requires timely access to specialized parts, repairs, and service. Use of authorized dealers ensures compatibility, maintains manufacturer warranties, and supports proper maintenance standards.
In the past year, Solid Waste has added 10 AMREP automated residential truck bodies to its fleet. These units require manufacturer-specific parts and service that must be performed by an authorized dealer. Wastebuilt Environmental Solutions, LLC is the exclusive authorized AMREP dealer for this region, as documented in the provided sole source letter.
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. For 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 AMREP units.
However, 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 AMREP 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:
- 3/18/24 - Purchase (5) Amrep automated side loader trucks
- 3/17/25 - Purchase (5) Amrep automated side loader trucks
Alternatives: None recommended
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award an annual contract to Wastebuilt Environmental Solutions for service, repair, and parts for AMREP refuse truck bodies. The contract shall not exceed $100,000 annually, with an option to renew annually for 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: 04/20/2026
Attachments: Sole Source Letter, AMREP Letter, Levine Act
Strategic Goal:
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☐ Economic Vitality |
☐  Organizational Excellence |
☐ Fiscal Strength |
☒  Infrastructure & Growth |
☐  Quality of Life |