ADMINISTRATIVE REPORT

Date: April 13, 2000
Author/Local: R. Chan/323-7792
RTS No. 01425

CC File No. 5103

Council: May 2, 2000

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Purchase of Additional Backhoe

RECOMMENDATION

THAT Council approve the allocation of a $115,000 loan from the Truck Plant Account to add one backhoe c/w with breaker to the Streets Operations Fleet.

POLICY

Council approves expenditures from Reserves, including the Truck Plant Account.

BACKGROUND

The Streets Branch are required to repair asphalt cuts in the roadways after the completion of other underground work. This work was originally accomplished with one full-time crew equipped with a backhoe and breaker and one secondary crew utilizing hand tools.

The second crew initially operated approximately six months a year and to improve efficiency a backhoe and breaker were rented. Over the years this work has increased such that the second crew now works 12 months a year and a backhoe and breaker are required full-time. This work is expected to continue at this level for the foreseeable future.

DISCUSSION

The current cost of renting a backhoe and breaker is $60,000 per year while City owned equipment can be operated at an annual cost of $51,000 (including loan repayment) for a saving of $9,000 per year.

Accordingly, we recommend that a $115,000 loan be appropriated from the Truck Plant Account for the purchase of one backhoe and breaker.

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(c) 1998 City of Vancouver