HomeMy WebLinkAboutCOM 0579.000 2016-2018I I
Harry Kim OF N, ,, Deanna S. Sako
Mayor
V d7 Director
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'1TE'OF.N'• C.D n
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County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720 "54r 3>rn
(808)961-8234 • Fax(808)961-8569 ::70
October 26, 2017
Valerie Poindexter, Council Chair and
Members of the Hawai`i 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 a 600 kw emergency generator to be used by the
Department of Environmental Management, Wastewater Division. This equipment is
needed as a backup generator for larger sewer pump stations in the event of a power
failure.
If there are any questions, please do not hesitate to call Robin Bauman of the Department
of Environmental Management at 961-8179.
Ity
Deanna S. Sako
Director of Finance
Enc.
c: Environmental Management
<1e.s. 312-17,
Cann No. 579
Ref.
Ref. Date OCT 3 0 201
Hawai'i County is an Equal Opportunity Employer and Provider
1
Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Environmental Management DATE: 09/12/17
STAFF CONTACT: Dora Beck PHONE: 961-8513
A. REQUEST:
Resolution authorizing the Mayor to enter into a multi-year lease agreement for five (5) years for a 600 KW
emergency generator for the Department of Environmental Management Wastewater Division.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
The Wastewater Division is requesting to lease finance a 600KW Emergency Generator.
The 600 KW emergency generator will be used to power wastewater plants (Hilo, Papaikou, Kulaimano,
Kealakehe) and the larger sewer pump stations (Pua, Wailoa, Kealakehe) in the event of a power failure.
Due to the higher electricity demand of these larger facilities the use of the 600KW generator is required for
these facilities. Two 200KW Generators will cover all other facilities.
Most facilities have a standby generator on site however these generators are getting old and are requiring
more maintenance. If a power outage occurs and an emergency/standby generator is unavailable, it is very
likely that a sewer spill to ground or state waters will occur.
The purchase price is estimated at $360,000.The estimated monthly lease payment is $6,500.00. This
equipment will be lease financed such that the County will own the equipment at the end of the five year
lease.
Funding for this equipment is budgeted in the FY17-18 budget, but delivery of this is not expected until next
fiscal year due to the long lead time for this equipment.
SIGNED: DATE: ///44,,,,,;77
r Department Head