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MEMO Date: 1 February 2005 To: Mayor Capra and Council Members From: Paul Palzer, Public Works Director/Building Official Re: Replacement of pickup trucks anummummmmmmmmmmmmmmmmmmmmmsommmmmmmmmoommmMMMMMMMMMMMEMMMMENEENnsommumms The Council has appropriated $15,000.00 in the 2005 budget for replacement of pickup trucks. The city agreed last year to replace the trucks on a yearly basis if feasible. The new 2004 Chevy pickups currently have roughly 2500 miles on them and should be under 6000 miles by June. Based on this mileage, the City should be able to sell them at our original cost including tax and licensing. The identical 2005 models are selling for about$200.00 more. To replace the three 2004 Chevy's should cost the City less than $1,000.00. I also propose to replace the 2001 Ford with a new chevy pickup. The difference between the Kelley blue book and 2005 price is about $9,000.00. The City should be able to replace all four trucks for less than the$15,000.00 that was budgeted. Annually the City should be able to continue this program and replace the vehicles for less that $500.00 each. This saves the city a tremendous amount of money annually on vehicle costs plus all of the vehicles are under warranty and do not require any tire or brake service. I'm requesting the Council approve the replacement of the four City pickups with new ones purchased through the state procurement contract and sell the existing pickups at the Kelly Blue Book value of$16,400.00 for the 2001 Ford, $25,000.00 for the two 20043/4 ton Chevy's and $40,000.00 for the 2004 1 ton Chevy. The cost of the three new 2005 Chevy 2500 extended cab short box trucks is $22,943.00 plus tax and license totaling about $24,835.00 each. The 2005 CMC 3500 with a utility box and plow will cost about $42,000.00 35