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Paul Palzer <br /> ►m: Paul Palzer <br /> Sent: Friday, May 27, 201110:15 AM <br /> To: Ben Fehrenbacher <br /> Subject: Trucks <br /> Attachments: 25 March 2003 vehicle replacement.doc; 2005 Chevy pickups.doc <br /> Hello Ben— <br /> Here is a little history on the truck replacement program the city has completed since 1997. <br /> Replaced pickup truck schedule: <br /> 3 yr cycle 1997 to 2000 - replaced 2 trucks for an annualized cost of$1,500.00 per year including tax& <br /> license. <br /> 2 yr cycle 2002 to 2004 - replaced 2 trucks for an annualized cost of$1,200.00 per year including tax& <br /> license. <br /> 1 yr cycle 2004 to 2005 - replaced 2 trucks for an annualized cost of$0.00 per truck including tax and <br /> license. <br /> 3 yr cycle 2005 to 2008 - replaced 2 trucks for an annualized cost of$1,780.00 per truck including tax& <br /> Anse. <br /> As you can read from my memos below, the annualized replacement program that was adopted by the Council <br /> was the most cost effective method for the city as we drove 2 trucks for free for the year, including tax and licensing. By <br /> replacing trucks yearly, the city can dollar cost average this expense and hopefully achieve the lowest overall cost of <br /> operating the fleet over the short and long term. If we had followed the yearly replacement program, we currently would <br /> have(2) 2011 trucks for sale with 5000 miles on them at our cost of$25,608.00. 1 will let you do your research to see if <br /> you think we could sell them at this price which includes tax& license 100%. <br /> The small dump truck which we discussed at the last Council meeting had run previously about$4,500.00 per <br /> year when on a 10+ year cycle, $3,500 when on a 5-8 year cycle and my proposed replacement would have an <br /> annualized cost of our current truck at$3,100.00 per year plus the cost of 8 tires and 6 more that we will need to install in <br /> the next few weeks at about$220 a tire or$3,080.00/7 yrs =440.00 per year for a total cost of$3540.00 per year for the <br /> last seven years. <br /> I hope this give a little background to what the costs are for the 4 pickups the city has in the rotation schedule. If <br /> you know of a better replacement plan, I would be very happy to research any other alternatives. <br /> Have a great weekend! <br /> Paul <br /> 1 <br /> 33 <br />