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Form #: B-52 <br /> 7/18/91 <br /> DEPARTMENT OF FINANCE <br /> REQUEST FOR COUNCIL ACTION <br /> DEPARTMENT; Environmental Management-Solid Waste DATE: 1/8/2024 <br /> STAFF CONTACT: Michael Kaha PHONE: 808-961-8270 <br /> A. REQUEST: <br /> Resolution authorizing the Mayor to enter into a multi-year lease agreement for the lease for two (2) <br /> Backhoes, 2024/2025 model year. <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br /> The Solid Waste Division utilizes "Backhoes" in its operations to move, sort and redistribute materials, <br /> digging and demolition work. <br /> The Division currently operates 2 backhoes, both 20+ years old. Both of which have operated beyond their <br /> life span, and it now time to be replaced as maintenance and repairs are becoming more and more frequent <br /> and expensive. <br /> The Division is requesting to purchase two (2) new 2024/2025 model year Caterpillar 430 backhoes. This <br /> new equipment will replace the aged fleet currently in utilized in West Hawaii. This will allow for a <br /> replacement to be situatetat the Kailua-Kona base yard, and one at the West Hawai'i Sanitary Landfill. <br /> This equipment will be leased financed such that the County will own the equipment at the end of a five year <br /> lease. It is estimated that one (1) unit will cost $180,000, with an estimated monthly lease payment of <br /> $3,400. Two (2) units are estimated to cost $360,000, with an estimated monthly lease payment of$6,800, <br /> the annual estmaited yealy lease cost is $81,600 for two backhoes.. <br /> Funding for the lease is included in the Fiscal Year 2023-2024 budget; due to the lead and delivery time the <br /> first payment is not expected to be made well into FY25 Q3. <br /> SIGNED: i DATE: ( - (0' Z1— <br /> epartm t Head <br />