HomeMy WebLinkAboutCOM 0480.000 2022-2024 Mitchell D. Roth oo+svo`",,�� Deanna S. Sako
Mayor �'• -� �,I t ' Director
*0 ' `� Diane Nakagawa
Deputy Director
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County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720
(808)961-8234 • Fax(808)961-8569
September 15, 2023
171
Heather Kimball, Council Chair and
Members of the Hawai`i County Council a3;
Hawai`i County Council w.
25 Aupuni Street `y
Hilo, Hawai`i 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 one landfill compactor. This equipment is to be
used by the Department of Environmental Management's Solid Waste Division and is
essential in managing the estimated 600 tons of daily generated waste. The lease
payments are anticipated to commence in FY 2024-25 at a monthly cost of
approximately $25,000.
If there are any questions,please do not hesitate to call Michael Kaha of the Department
of Environmental Management at 961-8270.
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Deanna S. Sako
kl Director of Finance •
Enc.
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Hawaii County is an Equal Opportunity Employer and Provider
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Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Environmental Management-Solid Waste DATE: 8/31/2023
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STAFF CONTACT: Michael Kaha PHONE: 808-961-8270
A. REQUEST:
Resolution authorizing the Mayor to enter into a multi-year lease agreement for one (1) 826 K sized Landfill
Compactor with Caron Landfill Compacting Wheels.
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B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
2003 CAT COMPACTOR 826GII is a front-line equipment in the West Hawaii Sanitary Landfill and is not
currently under warranty. Repairs require completion by OEM service technicians to insure warranty of parts
and service because there is no existing manufacturer warranty on this equipment. This front-line equipment
is heavily relied on to complete daily operational assignments. The County's Automotive Section is currently
unable to perform work on this equipment as this equipment is needed in operations immediately due to daily
assignments and tasks. Hawthorne CAT is the Authorized Dealer and Original Equipment Manufacturer
(OEM) for this frontline equipment and best suited to complete inspection and repairs in a timely manner
while providing warranty on any and all parts and labor required.
Without the compactor, the County will need to rely on a bulldozer, which in its self is not made to compact a
landfill. Compacting of the landfill is an important component of landfill management, as it helps to save air
space which in turns allows for longer use of the landfill, and it also helps to save on operating costs.
August 20, 2023, while operating on the landfill, the 2003 CAT COMPACTOR 826GII was involved in an
"equipment fire". Presently, the compactor is non-functional and will not start.
2003 CAT COMPACTOR 826GII has been inspected by Hawthorne CAT. The initial inspection/diagnosis will
• determine what the extent of damage to the equipment is and what repair costs will be.
Once diagnosis is completed by Hawthorne CAT, the Service Center will provide Itemized parts list cost to
complete repair and estimated labor and shop costs as well as GET to complete repair to the Division's 2003
CAT COMPACTOR 826GII AYH00551
The Division is requesting the purchase of a NEW 826 K Landfill Compactor. The Division's operations are
wholly dependant on one and only one Landfill to manage the islands estimated 600 tons of daily generated
waste. The Division's current equipment is old and in need of replacement due to the cost of upkeep and
maintenance.
This equipment will be leased financed such that the County will own the equipment at the end of a five year
lease.
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Funding for the lease is not included in the FY24 budget, because of the long lead time, no payments would
be made in FY24, the first payment would be made in FY25. Monthly payments are estimated at$25,000,with
an estimated total annual cost of$300,000.
SIGNED: DATE: q/i/ 3
Depa ent Head