HomeMy WebLinkAboutCOM 0765.000 2022-2024 Mitchell D.Roth o�jYr"N�y� Diane Nakagawa
Mayor :.�•�; I . .,
�'Ji' Director
•
• Aaron K.H. Brown
Deputy Director
• ,tf OF•M►'
County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720
(808)961-8234 • Fax(808)961-8569 €"
c :
March 1, 2024
-- - "
-71
Heather Kimball, Council Chair and
Members of the Hawai`i County Council •• X7.
Hawai`i 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 new multi-year lease agreements for three fire apparatus consisting of one hazmat
truck and two engines for the Fire Department. The hazmat truck will be replacing a
vehicle at the Kaumana Fire Station and the engines will replace units at the Pahoa and
Volcano Fire Stations. The estimated cost is $27,998 per month for hazmat truck and
$37,330 per month for the two engines.
If there are any questions,please do not hesitate to call Kazuo Todd, from the Hawai`i
Fire Department at 961-2900.
l
Diane Nakagawa
Director of Finance
Enc.
c: Fire
4'' ke► \5j2‘1
Comm. No.
Ref. To:
Hawai'i County is an Equal Opportunity Employer and ProvidERef• Date i R 5 2Q24
Form#: 8-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Hawaii Fire Department DATE: 2/27/2024
STAFF CONTACT: Kazuo Todd, Fire Chief PHONE: 932-2900
A. REQUEST:
Please prepare a resolution authorizing the payment of funds- in a later fiscal year and for more than one
fiscal year-for a multi-year lease of three fire apparatus (vehicles) for the Fire Department. The lease would
specifically be for a five(5) year lease term for critically needed units to replace older fire apparatus.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
We are replacing the Hazardous Materials Response Apparatus (hazmat truck) at Kaumana Fire Station
(station#4)and replacing Engines 10 and 19 at Pahoa and Volcano Fire Stations. These are front-line
vehicles that are past their recommended service life resulting in increasing repair and maintenance costs,
as well as prolonged down times and unreliability. Anticipated costs are $3.5 million plus interest over a five
year lease term.
The estimated lease cost for the hazmat truck is estimated at $27,998.10 per month, or$335,977.20 annually on
a fair market value lease of$1'.5'million. The start of lease payments will be based on delivery date..
The estimated lease,cost for the two engines is estimated at$37,330.80 per month, or$447,969.60 annually on
a fair market value lease of$2 million. The start of lease payments will be based on delivery date. -
The combined estimate is $65,328.90 per month, $783,946.80 annually.
_.. DATE: 2--
SIGNED:. r ,_
Department Head