Report Prepared by: Cosmo Ordunez, Public Works Manager-Internal Services
Title
SUBJECT: Approval to Purchase Two (2) New Side Loader Refuse Truck, and Necessary Attachment Equipment from Haaker Refuse, in the Amount of $892,186.92 for the Refuse Department to Replace E-1385 & E-1426
REPORT IN BRIEF
Considers approving the purchase of two (2) 2025 Peterbilt 520 truck with McNeilus Zero Radius Side Loader body in the amount of $892,186.92 ($446,093.46 each) utilizing the cost savings government procurement program (Sourcewell). The purchase of the new vehicle will replace aging equipment that will improve reliability, reduce maintenance costs, and increase efficiency in daily operations.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 and authorizing the purchase to be made with a cooperative purchase agreement through Sourcewell, a government procurement program; and,
B. Approving the purchase of two (2) 2025 Peterbilt 520 truck with McNeilus Zero Radius Side Loader body in the amount of $892,186.92 from Haaker Refuse, through Sourcewell contract # 110223-MCN; and,
C. Authorizing the City Manager to execute any necessary documents for the purchase specified above; and,
D. Authorizing the issuance of the Purchase Order, and approval of change orders not to exceed 10% of the total purchase price.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the FY 26/27 Adopted Budget.
DISCUSSION
History
Sourcewell offers an equipment/vehicle purchase program to government entities nationwide; specifications are created, and Request for Bids are sought by Sourcewell for a wide variety of equipment used by local governments. As a result of the nationwide scope of these programs, the City is able to purchase specialized equipment for much less than the more traditional method of creating specifications and soliciting bids in-house.
Over the last several years, the City has purchased a variety of equipment including, street sweepers, leaf trucks, fire trucks, refuse trucks, etc. through the Sourcewell government procurement program with great success.
The Public Works Department, Fleet Services Division, is requesting Council authorize the purchase of two currently budgeted fleet vehicle to replace two Side Loader Refuse vehicle, utilizing the nationwide government procurement service Sourcewell via Haaker Refuse (authorized dealer of McNeilus Truck & Mfg).
The two (2) new refuse trucks will be utilized by the Solid Waste Division to provide reliable and efficient collection services to residential, commercial, and municipal customers throughout the City. Refuse collection vehicles operate daily under demanding conditions that include frequent stop-and-go driving, heavy payloads, and continuous hydraulic operation, making them among the most heavily utilized vehicles in the City’s fleet.
Replacing aging refuse trucks provides significant operational, financial, and service delivery benefits to the City. As refuse vehicles age, maintenance and repair costs increase substantially, vehicle reliability decreases, and equipment downtime becomes more frequent. Extended repair periods and difficulty obtaining replacement parts can disrupt collection schedules, require the use of reserve equipment, increase overtime costs, and negatively impact customer service.
The replacement vehicles will improve fleet reliability, reduce maintenance expenditures, and enhance operational efficiency by providing staff with modern equipment designed to meet current industry standards. Newer vehicles also incorporate updated safety features and ergonomic improvements that enhance employee safety and reduce the risk of workplace injuries.
The listed vehicles to be purchased is budgeted in the FY 26/27 vehicle replacement adopted budget. The vehicles requested for purchase in this report will meet the California Air Resources Board (CARB) emissions standards, supporting the City’s commitment to maintaining an environmentally responsible and sustainable fleet.
Section 3.04.210 of the Merced Municipal Code provides that the City Council can approve a waiver of the City’s competitive bidding requirements when such purchases are made pursuant to cooperative purchasing in conjunction with other governmental entities.
Staff requests waiving the bidding requirements in order to standardize equipment and utilize the government pricing contract.
IMPACT ON CITY RESOURCES
This vehicle was approved in the FY 2026/27 adopted budget in Fund 7006-Vehicle Replacement, project #VR276030 in the amount of $920,000. No additional appropriation is needed.
ATTACHMENTS
1. Haaker Refuse Quote
2. McNeilus Truck Sourcewell Contract Documentation
3. Sourcewell Membership Documentation