HomeMy WebLinkAboutCOM 0086.000 2022-2024 3
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Mitchell D. Roth v+t"°`"+w Deanna S. Sako
Mayor °®a ''' Director
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Diane Nakagawa
Deputy Director
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Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720
(808)961-8234 s Fax(808)961-8569 p
January 20, 2023
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Heather Kimball, Council Chair and
Members of the Hawaii County Council
Hawaii County Council ,)
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution for multi-year lease
Enclosed is a resolution authorizing the payment of funds for more than one fiscal year
for a new multi-year lease agreement for six semi-tractors for the Department of
Environmental Management, Solid Waste Division. This equipment will be used to
transport refuse from the East Hawaii Regional Sort Station(EHRSS)to the West
Hawaii Sanitary Landfill (WHSL) and from the various transfer stations to the EHRSS
or the WHSL. The cost for the six semi-tractors will be approximately $25,800 per
month for 60 months.
If there are any questions,please do not hesitate to call Mike Kaha, from the Department
of Environmental Management at 961-8270.
Deanna S. Sako
Director of Finance
Enc.
c: DEM
Comm. No.
Ref, To:,
Ref. ate i ?,?
Hawai`i County is an Equal Opportunity Employer and Provider
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