THE CORPORATION OF THE
CITY OF PORT COQUITLAM

MEMORANDUM

B.R. Kirk, December 16, 1983
city Administrator

T.M. Chong, P. Eng.,
City Engineer

Replacement of Vehicle for Traffic Control Tradesman
(Public Works Committee Meeting December 13, 1988)

Recommendation:

That a replacement vehicle be purchased for the Traffic Control Tradesman
at an approximate cost of $21,000 and that the necessary funds be taken from
the Public Works Equipment Reserve.

Background and Comments:

The Engineering Department is currently preparing a comprehensive
equipment replacement program for Council's review during the 1989 budget
discussions. In anticipation of this, the replacement of vehicles has been
put on hold in 1988 with the exception of those which are well beyond repair
and no other viable option exists other than replacement. For this reason,
vehicle replacement costs in 1988 have been much lower than in previous years.

So far this year, the City purchased only two vehicles; a4 single axle dump
truck and a pick-up truck. We had hoped that these purchases would have been
sufficient to tie us over temporarily until Council has had the opportunity to
review the Comprehensive Equipment Replacement Program. Unfortunately, it has
come to my attention that the vehicle used by the Sign Installier/ Line Painter
has broken down recently and the City is currently renting a replacement
vehicle for approximately $650 per month excluding operating costs.

The downed vehicle has transmission problems and the anticipated minimum
repair cost to put it back on the road is $1,200. This high cost and the fact
that the vehicle is over 8 years old with rusted body, poor frame and chassis,
and running gear directed us to consider replacement at this time.

AS part of our replacement options analysis we considered three scenarios;
lease, purchase by borrowing, and purchase out-right using funds in the
equipment reserve. Appendix A attached, summarizes the characteristics of
these options. Generally speaking, the City has never considered the purchase
by borrowing option for equipment replacement. This option has been included
for comparison purposes. As Appendix A indicates the purchase out-right
option is the most economical. Th. Public Works Committee therefore
recommends this option. In addition, should Council approve this purchase it