SUBJECT
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Approve Amendment #1 to Agreement 2024-030 with RDK Assets, Inc. dba RDK Truck Sales (RDK) for waste collection truck leases. ($405,000.00 estimated expense)
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DESCRIPTION
On March 5, 2024, the Board approved an agreement with RDK to lease 9 trucks to perform waste collection services for 13,000 residents in the southern parts of the county. The agreement also allows for the ability to lease additional trucks with Board approval. The Solid Waste Division has requested to lease 3 additional trucks for staff to run the County’s transfer station located the North Central Landfill at 3131 K-Ville Road, Auburndale, FL 33823.
The transfer station is available for use by Polk County residents to dispose of household waste. This area is intended for customers to hand offload refuse in a safe environment separate from heavy commercial equipment and traffic. The County currently receives an approximately 200 tons per day at the transfer station.
The Solid Waste Division has historically used a contracted vendor to load and transfer the solid waste from the transfer station to the North Central Landfill. The Solid Waste Division has decided to perform these services in house providing for an estimated net annual savings of $346,000.
In order to provide these services, Solid Waste needs to lease 3 roll off trucks from RDK. The attached Amendment #1 provides for leasing the 3 needed trucks for an 18-month period. The 18-month cost for these leases is $378,000 with an estimated maintenance cost of $27,000.
Four new positions and one reclass was approved in the FY25 budget to run the transfer station in the amount of $284,000. The twelve-month cost of the three leased trucks totals $270,000 for a total cost of $554,000 to run the transfer station in house. The average annual cost to run the transfer station under the prior bid was $900,000. Resulting in an estimated annual net savings of $346,000.
The attached Amendment #1 to the Agreement provides for the lease of the 3 roll off trucks starting February 1, 2025, which are needed for the Solid Waste Division to provide transfer station services in house.
The County is currently building a new customer service center at the NCLF which will replace the current transfer station, providing for more efficient citizen self-loading and County unloading/transferring to the landfill. When the facility is completed, Solid Waste will be replacing the lease of the three roll off trucks with 2 semi-trailer trucks. An amendment to this agreement will be done at that time.
RECOMMENDATION
Request Board Approve Amendment #1 to Agreement 2024-030 with RDK Assets, Inc. dba RDK Truck Sales (RDK) for waste collection truck leases. ($405,000.00 estimated expense)
FISCAL IMPACT
Funds are available in the Solid Waste Fund.
CONTACT INFORMATION
Ken Brush
Procurement Contracts Manager
Procurement
(863) 534-6727
kenbrush@polk-county.net