COM 0041.003 2010-2012 - Laserfiche WebLink

Home

County of Hawaii Finance Committee Comm. No. 41 (Res. No. 411 -10) January 1, 2011 Page 2 of 6 The following are responses to questions posed by Councilmember Brenda Ford. 1. Has DEM evaluated the breakeven point between a price term agreement (PTA) bulldozer and purchasing (lease option to buy) a new bulldozer? Answer: New dozer $796,000 divided by PTA dozer $12,695 /month = 63 months ($796,000 = $725,000 new dozer sale price + $15,000 for 3 -yr warranty + $56,000 for 5- yrs of interest. 2. Has DEM prepared a chart/graph graphically indicating the breakeven point for the council? Answer: Not necessary, simple division of total price for new dozer divided by monthly PTA payments. 3. Is DEM proposing to purchase a new or used bulldozer? What advantages are there to each option? Answer: New bull dozer is preferred; however, DEM would consider a used dozer that is in good condition. New: • Less likely to have problems /less maintenance • Comes with a warranty and ability to buy an extended warranty. • Will include the latest safety and equipment features. • Higher salvage value at the end of the equipment's useful life. Used: ■ If in good condition, a year -old used bulldozer can save up to $200,000 or more compared to buying a new bulldozer. Not likely to have warranty 4. Has DEM fully considered its basis for purchasing a new bulldozer? Answer: Yes. Basis: • Hilo Landfill's DOH permit requires: o All solid waste to be compacted and covered by the end of each working day. • Maintaining adequate equipment and personnel to operate the landfill site. • A written Operations Plan that includes a list of necessary equipment and personnel. • Hilo LF's 1/25/00 Operation Manual (i.e., Operation Plan) requires at least one Caterpillar D8N bulldozer and indicates the County has two bulldozers, one of which is a spare. • The Hilo Landfill currently has three bulldozers: 1991 DBN, 2003 D8R and 2007 D6N. The D6N is used to dress the outer landfill slopes. • The County's landfill bulldozers are frequently down for repair and maintenance. • Currently, all three of the Hilo LF bulldozers are down for repairs. The PTA bulldozer is being used. • Part of the difficulty in maintaining the equipment relates to the State and County procurement laws and the time demands on County staff to create and process procurement documents. The other difficulty is using County Automotive Maintenance mechanics that are responsible for more than just DEM's