This recurring project provides for extensions to the power, water, and communications distribution systems to serve new, expanded or existing Canal Zone Government facilities, such as hospitals, schools, recreational areas, police facilities, etc.

The estimated cost of this project is tentative and subject to revision as the extent and magnitude of the Canal Zone Government needs materialize.

Authorization requested under this item provides for the purchase of 137 motor vehicles as replacements at a total capital cost of $1,000. Unit capital

cost for vehicles includes: f.o.b. factory price, inspection (in U.S.) charges, inland and ocean freight, and preparation for service costs. All vehicles to be replaced will exceed the mileage standards prescribed by the General Services Administration.

The vehicles will be essentially of the same type, size and capacity as those replaced, except in those cases where changes are dictated by service requirements. High utilization and the continuing very heavy demand for motor vehicle transportation services by the Company/Government require that the proposed 137 vehicles be procured in FY 1975 in order that the Company may maintain an efficient, reliable and responsive. fleet at minimum cost.

The proposed 137 vehicles, by type and estimated capital cost, to be procured in FY 1975 are listed below:

This recurring item provides for the replacement or addition of small plant and equipment which has reached the end of its serviceable life and is no longer economical to maintain. The requirements of various activities are listed below:

a. Electrical Systems

... $400

Replacements and additions consist of various items used in connection with power generation and distribution, communications and other related activities. Items which can no longer meet their service requirements and which will be replaced in 1975 include: electric ranges ($115), operating batteries ($15), radio equipment ($60), telephone system equipment ($170), and miscellaneous minor equipment ($30). This item also provides $10 for completion of the FY 1974 item to replace transit radios.

b. Motor Transportation

$ 90

Replacement and additions required in this activity are: a two-brush system to the automatic light vehicle washer ($40), two rapid air lifts ($2.2), four automotive parts washers ($4.2), three engine overhaul stands ($3), two steam cleaners ($4.8), two sheetmetal brakes ($2.7), an air compressor ($4.5), two disc brake grinders ($3.8), one metal cutting saw ($4.8), and miscellaneous small tools and equipment ($20).

c.

Water Transportation

$ 20

This project will include replacement of miscellaneous steamship equipment ($20) for the engine room and galley.

d. Railroad Operations

$ 15

This provides for the purchase of miscellaneous small tools and

This nonrecurring project provides for replacing the roof on the main Storehouse building in the Atlantic area.

The Storehouse building is of steel construction and was built in 1930. The general condition of the building is good with the exception of the corrugated galvanized iron roof, which has reached an advanced state of deterioration. Despite frequent maintenance, the roof continues to develop numerous leaks during rainy weather. The new roof will be of aluminum construction to permit longer life and will require less maintenance.

1

This project provides for the reroofing of the building and hoods with new corrugated aluminum and translucent panels. Paint, lubricants, electrical cable, and other materials are stored in this building. The building has a steel frame, galvanized iron siding, and concrete flooring and is in good condition except for the roof.

This project covers the construction of a concrete block room within the Cristobal Storehouse. Air conditioning will be provided by a window type unit.

This additional storage space is necessary in order to preserve tugboat and other spare parts which are highly sensitive to local climatic conditions and subject to deterioration.

52.

Replace and Add Equipment, Other Supporting Activities
(All dollars in thousands)

This project covers recurring replacements and additions to maintain a pool of serviceable and up-to-date furniture and equipment adequate for the needs of Company/Government units.

b. Grounds Maintenance

$ 130

This item provides for the replacement of equipment used for pest control, grass and hedge cutting (mowers, power sprayers, tractors, hedgers), tree pruners and other new types of Grounds Maintenance equipment to improve efficiency of the operation ($50), and for the replacement of the crane at the Red Tank Dump ($80).

c.

Storehouses

$ 95

This project covers the purchase of six new electric battery-operated forklift trucks of 2,500 lb. capacity together with a battery and charger for each truck ($90). These forklift trucks are capable of maneuvering in narrow aisles and stacking high (156" vs. 112" for existing trucks) in inside storage areas as well as reducing levels of exhaust fumes, sparks and noise from gasoline-powered trucks.

This item also includes $5 for the replacement of miscellaneous minor equipment, such as air conditioners, water coolers, forklift truck batteries,

shelving, etc., as the useful service life expires.

d. Printing Plant and Graphics

$50

This item provides for the replacement of such equipment as an offset duplicator ($6), video equipment ($12), film processing equipment ($17), cameras, projectors and recorders ($5), and studio lighting equipment ($10) for the activities of the Printing Plant and the Graphics Branch.

The purpose of this recurring item is to make an authorization available to be used for early engineering and planning work on projects included, or to be included, in the Panama Canal Company capital programs and budgetary submissions. The advance planning work is necessary to obtain sufficient data and design on which to base estimates, descriptions, and specifications.

54. Replacements and Improvements to Company Buildings (All dollars in thousands)

This is a recurring program to cover small replacements and improvements to public buildings by the Company. The work selected for accomplishment each year is based on necessity with respect to efficiency of operations or on betterment of working conditions. Examples of the type of work which may be performed are replacement of utility services, installation of tile flooring and acoustical celotex, alterations and remodelings to obtain additional improved office space, additions, and replacements of janitorial equipment, etc.

This item provides for unforeseeable minor items of capital and for items which may be foreseen but which are too small to warrant separate listings and justifications. The authorization makes available to the President of the Company the authority which is deemed to be essential if the business-type operations of the enterprise are to function without interruption due to need for individual items that cannot be anticipated. The Company's Board of Directors is informed of the items approved by the President at the meeting subsequent to the action.

This item provides for the cost of unanticipated removal and/or retirement of Panama Canal Company capital items from plant, particularly items for which there is no replacement project.

In the continuing survey and development of the accounting system and related operations it is to be expected that need will arise for various types of special office machines and equipment to be used in accomplishing specific improvements and revisions in accounting and related operations. While it is not possible to determine in advance the particular equipment for which need will develop, it is considered very important that a reasonable amount be available to permit the purchase of equipment at the time a positive need therefor is demonstrated. required is provision for alterations and functional improvements to offices.

Also

This recurring item provides for replacing and adding equipment for apprentice training and employee development, and includes equipment for the plumbing and hydraulics laboratory ($5), machinery, tools, air conditioners, and visual aids equipment for the Industrial Trades School ($10), and miscellaneous equipment for the Employee Utilization and Career Development Program ($5). This project also provides for the purchase of welding and electronics laboratory equipment ($10).

This is a recurring project for replacement of suction dredge pontoon cylinders, shore pipe, and purchase of dredge pipe ball joints.

In highly abrasive material areas, such as Gaillard Cut and Atlantic coral banks, the life of dredge pipe is one year. In other materials such as sand, silt, etc., the useful life of the pipe and cylinders varies from two to five years. A portion ($75) of this request will be used for purchase of dredge pipe ball joints which are a patented item and form an integral part of the finished pipeline installation.