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Form #: B-52 <br /> 7/18/91 <br /> DEPARTMENT OF FINANCE <br /> REQUEST FOR COUNCIL ACTION <br /> DEPARTMENT: Department of Public Works - Highways DATE: October 14, 2016 <br /> STAFF CONTACT: Neil Azevedo/Trixy Miller PHONE: 808-961-8349 <br /> A. REQUEST: <br /> RESOLUTION for: (3) Truckats with Mulching Unit Attachments <br /> ...to be paid through a multi-year lease agreement over a 5-year (60-month) period. Items is equipment that <br /> has already been budgeted under the rental/lease account. <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br /> 1 -Truckat to Kohala as a new item to help with various projects. <br /> 1 -Truckat to Kona Roads to replace CH2382 - GMC Tiger Truckat Mower purchased in 2006 <br /> 1 -Truckat to Puna Roads to replace CH2335 - GMC Tiger Truckat Mower purchased in 2004 <br /> ...all with Mulching Units <br /> The new equipment will help to alleviate equipment repair and parts cost spent on older equipment that <br /> breaks down. It will also increase efficiency and amount of work done due to more equipment being available <br /> in different districts. <br /> Future year budgets will take into account the funds needed based on estimated financial terms. <br /> An-icipated costs are approximately $200,000 with interest over a 5-year lease <br /> to purchase term, PER TRUCKAT ($600,000 with interest overall) . Estimated lease <br /> cost is approximately $3,000 per month, per truck ($9,000 for 3) , or $42,000 annually <br /> ($126,000 for 3) , to begin upon estimated delivery date of April 2017, as included <br /> in the current year's budget. <br /> This purchase will be funded by the Highway Fund. <br /> SIGNED: 1,-v() DATE: arty t/l10 <br /> 4PQTLDepartmeead <br />