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Form#: 8-52 <br /> 7118/91 <br /> DEPARTMENT OF FINANCE <br /> REQUEST FOR COUNCIL ACTION <br /> DEPARTMENT: Environmental Management DATE: 01131/2022 <br /> STAFF CONTACT: Mike Kaha PHONE: 808-961-8270 <br /> A. REQUEST: <br /> Resolution authorizing the Mayor to enter into a multi-year lease agreement for a period of five (5) years for <br /> three (3) Semi-Tractors for the Department of Environmental Management, Solid Waste Division. <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br /> The Solid Waste Division is requesting to lease finance three (3) Semi-Tractors to be used to transport <br /> refuse from the East Hawai'i Regional Sort Station (EHRSS) to the West Hawaii Sanitary Landfill (WHSL). <br /> Due to aged fleet and constant repairs, the Division plans to replace three truck tractors. These three semi- <br /> tractors are over 14 years old and have over 240,000 miles. Currently, the Division hauls loads of municipal <br /> solid waste to the WHSL landfill daily, requiring at least four semi-tractors dedicated to this task. <br /> Since the start of the Covid-19 Pandemic in 2020, the Division has problems getting vehicles back into <br /> service due to supply chain problems for parts. The Division's aging fleet is taking longer to get repaired and <br /> back into operation. Dependable truck tractors need to be available to deliver collected wastes to WHSL. <br /> Without trucks the EHRSS cannot transfer the collected waste to the WHSL and is forced to store the <br /> undelivered waste, thus services at the transfer stations become curtailed as available fleet and drivers <br /> prioritize moving stored waste from the EHRSS to the WHSL, <br /> The purchase price is estimated at $266,000.00 each, or$798,000.00 for three (3) Semi-Tractors. The <br /> estimated lease payment is $14,100.00 per month for three semi-tractors. Funding for the lease is included <br /> in the FY 2021-2022 budget although the delivery of these semi-tractors is not expected until next fiscal year <br /> due to the long lead time for this equipment. This equipment will be leased financed such that the County will <br /> own the equipment at the end of the five (5) year lease. <br /> We respectfully request that this resolution be waived from the Council's Finance Committee and be placed <br /> on the February 23, 2022 Council agenda in order to expedite the procurement of this equipment. <br /> 3 <br /> SIGNED: DATE: <br /> Depart ent Head <br /> i <br />