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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: 12/28/2023 <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 of two (2) Wheeled <br /> Loaders, 2024/2025 model year. <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br /> The Solid Waste Division utilizes "Wheeled Loaders" in it's operations to sort and separate municipal solid <br /> waste received from various transfer stations, waste is then taken to the East Hawaii Regional Sort Station <br /> where it is then sorted and redistributed for reloading purposes in preparation of the long haul to the West <br /> Hawaii Sanitary Landfill (WHSL) for final disposal. <br /> The Division currently operates 2 Wheeled Loaders purchased in 2007; as the loaders operate 8 hours a <br /> day, 7 days a week, 362 days a year, both have operated beyond their life span, and it now time to be <br /> replaced as maintenance and repairs are becoming increasing frequent and expensive. <br /> The Division is requesting to purchase two (2) new 2024/2025 model year Wheeled Loaders. This new <br /> equipment will replace the aged fleet currently in use at the Sort Station, and will now allow for a new primary <br /> loader to be used.at the Sort Station, and the second new loader will be placed at the Wai`ohinu Transfer <br /> Station sortng area. The function of both loaders will be sort and redistribute the trash for reloading <br /> purposes in preparation of the long haul to the WHSL. <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 $635,000, with an estimated monthly lease payment of <br /> $11,900. Two (2) units are estimated to cost $1,270,000, with an estimated monthly lease payment of <br /> $23,700, the annual lease payments are estimated to be 284,400 <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: DATE: j0_ Z41- <br />