THE CORPORATION OF THE CITY OF PORT COQUITLAM

MEMORANDUM . APR 30 1979

Mayor and Council April 27th, 1979

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F.E. Peters, P. Eng.,
City Engineer

Re: Replacement of 1973 John Deere Backhoe
Unit #62007 .

In preparing the submission for the 1979 Budget, the
previous Public Works Committee considered equipment replacement
out of Equipment Reserve under two priorities, those which were
essential for 1979 and those which could be delayed for another
year. The Committee recommended that only those items which
were essential be replaced this year.

One of the items which was in the second priority was
a replacement backhoe for the Parks Department. In further
analyzing the problems that we have been having with this piece
of equipment and the operating cost over the past years, it has
become obvious that it should have been included in the first
priority. The machine has had a persistent problem with the
steering valve over the past two years and this year has already
broken down three times at a time when the equipment was badly
needed for construction. Although normal operating costs for
this piece of equipment should be approximately $4,000.00 per
year, the cost in 1977 was actually about $8,000.00 and in 1978
-about $17,000.00.

The Leisure Activities Committee has discussed the need
for this replacement backhoe and agrees that it should be purchased
at this time. I therefore recommend that it be purchased out of
Equipment Reserves at an estimated cost of about $30,000.00. The
balance currently remaining in the Equipment Replacement Reserve
is about $182,000.00.

F.E. Peters, P. Eng.,
City Engineer.