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Paul will be at your meeting and can explain more fully, but I believe that <br /> the vehicle replacements are justified. The vehicles depreciate in value at a very <br /> steady rate, so the cost per year of ownership is about the same whether you rotate <br /> the vehicle on a short cycle or long, but we add to the depreciation the annual <br /> maintenance costs which tend to increase as the vehicle ages. There probably is <br /> no reason to keep the vehicles to the point where we risk major repairs and loss of <br /> service. The funds are in the Capital Equipment Fund, so I believe that the <br /> Council would be justified in approving the purchase. <br /> 4. Change Order#1, Royal Meadows. This work involves a variety of catch basin <br /> and curb repairs as well as gate valve & manhole adjustments in conjunction with <br /> street mill and overlay work. Paul solicited proposals from at least three <br /> contractors and received proposals ranging from $82,550 to $113,862.70. Staff <br /> recommends approving the lowest cost method of accomplishing the work, and <br /> recommends approving a change order to add this amount to the contract for the <br /> Royal Meadows Project. <br /> Lake Shore Parcels. I can report that St. Paul Regional Water has indicate that they <br /> could go either way with the northerly lake shore parcel along Main Street. If the City <br /> wants to own it, they appear willing to include it at no extra cost, but they would not <br /> require that it be part of the transaction. I suggest that you determine if the consensus <br /> is still in favor of including it in the purchase. I would then work with St. Paul <br /> Regional Water on the purchase along the lines of what was discussed at your last <br /> meeting. <br /> Dallas Larson, City Administrator <br /> 2 <br />