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E ui ment Procurement (cont 'd) <br /> equipment an added repair guaranty beyond a certain specified <br /> ceiling and repurchase guaranty . The cost of repair guaranty <br /> over a specified ceiling obligates the seller for all major <br /> repairs and performance. <br /> Down time would be reduced to a minimum and budgeting would <br /> be definite with each succeeding year. The seller additionally <br /> guarantees a repurchase of the equipment at a specified amount . <br /> However, the agency reserves the right to sell to other or keep <br /> the equipment . <br /> A total cost purchase for the above equipment has also been <br /> estimated to cost $110, 000. This is with a repurchase obligation <br /> on the part of the dealer of $23,000 and includes a warranty <br /> ceiling in the specification to hold the actual cost to the county <br /> on all maintenance and repairs over those included in the warranties <br /> to remain at a fixed amount. <br /> A pure lease with full maintenance on the above equipment is <br /> estimated to cost approximately $2,300 per month for 60 months <br /> or five years . <br /> Based upon the available information, a comparison of hourly <br /> cost for each method was made to determine the most economical <br /> approach. <br /> For comparison purposes the four methods previously mentioned <br /> were analyzed on the basis of three years or 8000 hours use to <br /> determine the cost per hour. This 8000 hour point was considered <br /> the most representative for comparing the various methods in that <br /> the leasing alternate envisions using more than one machine over <br /> the period of the lease agreement. <br /> 15 <br />