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HomeMy WebLinkAboutCOM 0323.000 2018-2020 Harry Kim .JMty Os M..dY Deanna S. Sako Mayor ��L� ,• Director At Steven A. Hunt a- = Deputy Director f,rE:+ .rr•: P./ GF•M'�" County of Hawai 1 Finance Department 25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 (808)961-8234 • Fax(808)961-8569 May 30, 2019 Aaron Chung, Council Chair and co c, Members of the Hawai`i County Council ,,, . Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 :ice 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 two semi-tractors for the Department of Environmental Management. These vehicles will replace older tractors which have been classified as unrepairable. The anticipated lease cost is approximately $8,000 per month for two semi-tractors. If there are any questions,please do not hesitate to call Robin Bauman of the Department of Environmental Management at 961-8179. Deanna S. Sako Director of Finance Enc. cc: Environmental Management KR Comm. No.r.,\:71-.V Ref.To: tv Hawai'i County is an Equal Opportunity Employer and Provider Ref. date MAY 31 2019 Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Environmental Management DATE: 05/15/19 STAFF CONTACT: Mike Kaha PHONE: 961-8270 A. REQUEST: Resolution authorizing the Mayor to enter into a multi-year lease agreement for a period of five (5) years for two (2) 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 two (2) Semi-Tractors to be used to transport refuse from the East Hawaii Regional Sort Station (EHRSS) to the West Hawaii Sanitary Landfill (WHSL). The South Hilo Sanitary Landfill (SHSL) is projected to have less than 5 months of remaining air space. Due to regulatory restrictions, the County is unable to construct a new landfill in East Hawai'i. The County will be transporting the debris from EHRSS over to WHSL. This operation requires at least eight (8) truck tractors to accomplish this work of hauling refuse to the WHSL. Due to accidents that caused two (2) of our truck tractors to become classified as unrepairable, the Division is needing to replace these lossess in order to accomplish operations. The purchase price is estimated at $200,000.00 each, or$400,000.00 for two (2) Semi-Tractors. The estimated lease payments is $8,000.00 per month for two Semi-Tractors. Funding for the lease is not included in the FY 2018-2019 budget as 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. Nly%\‘ ‘ ,C SIGNED: 1441 DATE: 740� Department Head