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Form : -52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Environmental Management DATE: 01/11/2023 STAFF CONTACT: Mike Kaha PHONE: 808-961-8270 A. REQUEST: Resolution authorizing the Mayor to enter into a multi-year lease agreement for a period of five (5) years for six (6) Semi-Tractors for the Department of Environmental Management, Solid Waste Division, B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The Solid Waste Division is requesting to lease finance six (6) Semi-Tractors to be used to transport refuse from the East Hawai'i Regional Sort Station (EHRSS) to the West Hawaii Sanitary Landfill (WHSL) and from the various transfer stations to the EHRSS or the WHSL. Due to aged fleet and constant repairs, the Division plans to replace six truck tractors, These six semi-tractors are over 15 years old. Since the start of the Covid-19 Pandemic in 2020, the Division has problems getting vehicles back into service due to supply chain problems for parts. The Division's aging fleet is taking longer to get repaired and back into operation. Dependable truck tractors need to be available to deliver collected wastes to WHSL. Without trucks the EHRSS cannot transfer the collected waste to the WHSL and is forced to store the undelivered waste, thus services at the transfer stations become curtailed as available fleet and drivers prioritize moving stored waste from the EHRSS to the WHSL. The purchase price is estimated at$246,000.00 each, or$1,476,000.00 for six (6) Semi-Tractors. The estimated lease payment is $25,800.00 per month for six semi-tractors. Funding for the lease is included in the FY 2022-2023 budget although the delivery of these semi-tractors is not expected until next fiscal year due to the long lead time for this equipment. This equipment will be leased financed such that the County will own the equipment at the end of the five (5) year lease. SIGNED: % 8'2a, DATE: DepAftment Head