SUBJECT
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Approve agreement with RDK Assets, Inc. dba RDK Truck Sales (RDK) for long term waste collection truck leases. ($956,000.00 annual estimated recurring expense)
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DESCRIPTION
The County currently has a piggyback agreement with RDK to lease 3 trucks to perform waste collection services for 1,300 residents in the southern parts of the county. Starting on October 1, 2024, the County will increase the service area to 13,000 residents resulting in the need to lease a total of 9 trucks (existing vehicles will be exchanged).
Waste and Recycling requested Procurement to solicit proposals for the purpose of leasing waste collection trucks for County staff to use to collect residential solid waste in the southern parts of the County. Request for Proposal 24-124 Long Term Waste Collection Truck Leases was issued, and one vendor submitted a proposal.
On January 23, 2024, the Board approved the selection committee's recommendation and authorized staff to negotiate with RDK. The attached agreement is the result of those negotiations.
The agreement provides for the long-term lease of 9 new waste collection trucks with a delivery date of May 1, 2024. This will allow time for Waste & Recycling to prepare and equip the trucks for use by October 1, 2024. Starting June 1, 2024, County staff will utilize 3 of these new trucks to continue providing the collections services to the current 1,300 residents while the other trucks are being prepared and equipped.
The lease payments for the nine trucks total $864,000.00 annually for a total of $7,488,000.00 over the term of the agreement. The vendor will be responsible for warranty repairs and the County will be responsible for preventative maintenance, to include the purchases of replacement parts and various equipment. It is estimated that W&R will spend approximately $92,000.00 per year for replacement parts and equipment, for a total estimated annual of cost of $956,000.00.
If there is a need for additional trucks d...
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