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. g5 <br /> • <br /> Larry also indicated that he would like the City to consider installing a computerized <br /> system whereby the employee uses a card key to access the gas tanks. In this way, the <br /> employee would not need a key to get gas and the City would have a computerized log of <br /> the amount of gas taken and by whom. Currently, the user has to fill out a gas sheet, <br /> which is frequently filled out incorrectly, i.e. amount of gas/diesel taken. <br /> Attached are copies of the invoices from McQueen Equipment for gasoline and diesel for <br /> years 1995 and 1994 indicating the amount of gasoline and diesel that the City has <br /> purchased from them. In 1995, the City purchased approximately 30,943 gallons of <br /> gasoline. The average amount that the City paid per gallon was $.67; the City paid <br /> approximately $20,732 (30,943 gallons x $.67 = $20,732). Currently, (3/96) the City is <br /> paying $.85/gallon for gasoline and as you can see from the 1995 and 1994 invoices, these <br /> prices tend to fluctuate throughout the year. For that reason, I averaged the cost per <br /> gallon and used that figure in my computations. <br /> I also called a local service station to inquire if they have a commercial rate or give a fleet <br /> discount to businesses and if so, what is the rate. He told me that most gas stations in the <br /> area are not giving any kind of a discount because they are charged only cents less than <br /> • what they actually charge their regular customers. (I only checked locally because it would <br /> be difficult and inefficient for Police or Fire personnel to travel to another city for fuel.) <br /> I asked what the current price per gallon was and he said that they raised them today to <br /> $1.23/gallon for regular unleaded. <br /> So that computation looks likes this if the City went to local service stations for gasoline: <br /> a. 30,943 gallons/year x $1.23/gallon = $38,060. The difference between providing <br /> fuel on site and purchasing it from the gas station is $17,328. <br /> b. Using these estimated figures, we can figure out how long it would take for the new <br /> fuel tanks to pay for themselves: <br /> New Fuel Tanks (30 years warranty): $69,000 <br /> Difference in Gas Costs to the City: $17,328 <br /> Years to Payoff: ($69,000 - $17,328 = 3.98) 3.98 years <br /> I am assuming similar savings for diesel fuel. <br /> • <br />