THE CORPORATION OF THE CITY OF PORT COQUITLAM

MAR 25 1985

MEMORANDUM

March 25, 1985.

Kirk.

TO .
y Administrator

B.R
Cit

FROM: F.E. Peters
City Engineer

SUBJECT: REPLACEMENT OF BACKHOE

RECOMMENDATION:

That the City purchase a new backhoe to replace our existing
backhoe # 2018 with the estimated cost of $55,000.00 to come
out of equipment reserve funds.

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BACKGROUND AND COMMENTS:

Our 1979 John Deer backhoes requires work estimated to cost
between $15,000.00 to $20,000.00 to restore it to a useable
condition. We did not provide for replacement of this backhoe
in the.1985 budget. However, beacause of the high cost of
restoring. the equipment, we felt that it might be better to
lease or purchasé a new vehicle rather than putting the money
into a plece of equipment which ts already 6 years old. We
have attempted to get by with only two backhoes but find that
even before the major construction.season ‘starts we are having
to hold up some work because this backhoe Is not available.

Our other two backhoes are both 1978 models which may soon
become unrellabie due to age. We feel that Itt Is Important
that we have at least one good backhoe avallable.

Because the replacement of this backhoe was not Included In the
1985 budget, we obtained quotations for leasing of the
equipment. After careful calculations, we find that there Is
no advantage to us In leasing the equipment.

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