ADMINISTRATIVE REPORT

Date: May 29, 2002
Author/Local: Thomas Ban / 323-7882

RTS No. 02697

CC File No. 5106

Council: June 11, 2002

TO:	Vancouver City Council
FROM:	General Manager of Engineering Services
SUBJECT:	Addition of One Articulated Aerial Lift

RECOMMENDATION

A. THAT Council approve financing of $80,000 from the Plant Account to add one articulated aerial lift to the Equipment Services Fleet.

B. THAT Council approve funding from internal rates with no increase to the operating Budget.

POLICY

Council approves expenditures from Reserves, including the Plant Account.

Council approves all increases in service levels including the addition of equipment to the fleet.

DISCUSSION

Routine building maintenance at the Manitoba Yard Garage requires access to the ceiling in order to reach electrical conduits, heating vents, cables, lighting, and plumbing. As well, outfitting projects often require work to be performed several meters above ground on the exteriors of vehicles and machinery.

Since May of 2000, this work has been completed by renting two scissor lifts (narrow-base and wide-base). A narrow-base scissor lift is used whenever the wide-base scissor lift cannot fit into the work area. Carpentry and Electrical Operations are the major users of these two scissor lifts; however, they are shared by other groups as required.

Recently, Engineering Services surveyed the current scissor lift users at the Manitoba Yard Garage and determined that one articulated aerial lift would be better able to perform all of the tasks normally done by the two scissor lifts. The articulated aerial lift was able to position a worker more easily, safely and quickly because of its ability to not only go up and down, but also swing sideways unlike a scissor lift which is restricted to only up and down motions.

FINANCIAL IMPLICATIONS

Table 1 shows the ownership costs for one articulated aerial lift versus two scissor lifts over a seven year life. The purchase of the articulated aerial lift will result in savings to the Manitoba Yard Garage's building maintenance expenditures versus either renting an articulated aerial lift or the current practice of renting two scissor lifts. Therefore, there will be no increase to Equipment Services' internal budget and no increase to the composite rate.

TABLE 1: Cost Comparison Between One Aerial Lift versus Two Scissor Lifts Over 7 Years

	Purchased Articulated Aerial Lift	Rented Articulated Aerial Lift	Two Rental Scissor Lifts
Purchase Cost	$80,000	n/a	n/a
Total Rental Costs Over 7 Years (based on 20 hours per month of expected usage)	n/a	$201,600	$102,480
Maintenance Costs Over 7 Years	$17,500	included in contract	included in contract
Productivity Lost Over 7 Years	n/a	n/a	$21,000
Resale Recovery	($15,000)		n/a
Delivery Charges Over 7 Years (based on 12 deliveries per year)	n/a	$6,300	$12,600
Net Cost to City After 7 Years	$82,500	$207,900	$136,080

 

 

 

 

 

 

 

 

It is conservatively estimated that worker productivity gains will be on the order of $3,000 per year, or nearly four hours of recovered worker productivity per month for a total of $21,000 over seven years due to faster, and safer repairs. Engineering Services has the technical opinion that one aerial lift can do the same work of two scissor lifts in the same time period.

The Plant Account will be reimbursed by charging rental rates to users of the articulated aerial lift over its seven year operational life.

RECOMMENDATIONS

Engineering Services recommends that Council approve financing of $80,000 from the Plant Account for the purchase of an articulated aerial lift. This purchase will be funded from internal rates with no increase to the Operating Budget.

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(c) 1998 City of Vancouver