| MV Transportation, Inc. |
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| City
of Lawrence Transit System |
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| Light-Duty
Cutaway vs. Heavy-Duty Transit Vehicle Lilfetime Cost Comparison |
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| 5/20/2008 |
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| 30' Heavy-Duty Vehicle |
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2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Subtotal |
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Miles |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
55,000 |
660,000 |
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Maintenance Cost per Mile |
$0.16 |
$0.18 |
$0.22 |
$0.22 |
$0.28 |
$0.35 |
$0.36 |
$0.37 |
$0.38 |
$0.40 |
$0.42 |
$0.42 |
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Annual Maintenance Costs |
$8,800 |
$9,900 |
$12,100 |
$12,100 |
$15,400 |
$19,250 |
$19,800 |
$20,350 |
$20,900 |
$22,000 |
$23,100 |
$23,100 |
$206,800 |
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Annual Depreciation |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$26,667 |
$320,000 |
| $4.48
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Cost per Gallon (Diesel) w/o fed
tax |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
$4.15 |
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Miles Per Gallon |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
5.0 |
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Annual Fuel Costs |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$45,650 |
$547,800 |
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Total Costs |
$
81,117 |
$
82,217 |
$
84,417 |
$
84,417 |
$
87,717 |
$
91,567 |
$
92,117 |
$
92,667 |
$
93,217 |
$
94,317 |
$
95,417 |
$
95,417 |
$
1,074,600 |
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| 25' Light-Duty Cutaway |
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2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
Subtotal |
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Miles |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
60,500 |
726,000 |
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Cost per mile |
$0.070 |
$0.080 |
$0.120 |
$0.180 |
$0.078 |
$0.090 |
$0.134 |
$0.202 |
$0.088 |
$0.100 |
$0.151 |
$0.226 |
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Annual Maintenance Costs |
$4,235 |
$4,840 |
$7,260 |
$10,890 |
$4,743 |
$5,421 |
$8,131 |
$12,197 |
$5,312 |
$6,071 |
$9,107 |
$13,660 |
$91,868 |
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Annual Depreciation |
$40,500 |
$40,500 |
$40,500 |
$40,500 |
$48,600 |
$48,600 |
$48,600 |
$48,600 |
$58,320 |
$58,320 |
$58,320 |
$58,320 |
$589,680 |
| $3.65
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Cost per Gallon (Gasoline) w/o
fed tax |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
$3.38 |
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MPG |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
7.5 |
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Annual Fuel Costs |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$27,265 |
$327,184 |
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Total Costs |
$
72,000 |
$
72,605 |
$
75,025 |
$
78,655 |
$
80,609 |
$
81,286 |
$
83,997 |
$
88,062 |
$
90,898 |
$
91,657 |
$
94,692 |
$
99,246 |
$
1,008,732 |
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Additional Labor Cost |
$14,910 |
$15,563 |
$16,204 |
$16,832 |
$17,485 |
$18,185 |
$18,912 |
$19,668 |
$20,455 |
$21,273 |
$22,124 |
$23,009 |
$224,622 |
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$ 1,233,354 |
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| Notes: |
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| Miles on Cutaways are 1.1 times the number of a heavy-duty
vehicle operated as it will take two cutaway vehicles to provide peak service
capacity and complete 14 hour service day as opposed to one heavy-duty and to
extend the useful life of the vehicle beyond 2 years. Please note the additional cutaway vehicles
purchase price is included in the cost comparison under depreciation. |
| Assumes
cost of vehicles increases 5% annually. |
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| Assumes
heavy-duty vehicle on 12 year depreciation and Cut-away
on 4 year depreciation life. |
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| Assumes
heavy-duty vehicles will travel 726,000 miles before they are replaced. |
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| Experience
indicates that you can squeeze out more miles on heavy-duty vehicles. Drive train components may need to be
replaced, however, vehicle is still structually sound. |
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| Assumes
light-duty vehicles will travel 121,000 miles on average before they are
replaced. Operating and maintaining
these vehicles for a fifth year is
cost prohibitive and adversly impacts service reliability. |
| Experience
indicates that light-duty vehicles are dead upon traveling approximately
130,000 miles requiring both costly major component replacement and
structural repairs. |
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| Manufacturer's
useful service life of a heavy-duty vehicle is 12 years or 500,000 miles
(whichever comes first). |
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| Manufacturer's
useful service life a light-duty vehicle is 5 years or 100,000 miles
(whichever comes first). |
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| Based
on current level of service for fixed-route service, vehicles are operated 14
hours per day, 6 days per week. |
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| Another
factor not included in the analysis is increased labor cost to operate 2
cutaways instead of 1 heavy-duty bus on each route. |
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| Estimated
to increase labor cost to increase by 20 minutes per route, per day or 3.3
hours total per day of additional labor if all routes were converted. |
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| Additional
labor cost would be included in operating expenses to accurately reflect
additional time required for increased number of daily pullouts. |
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| In
order to maximize the vehicle useful life, by decreasing the total number of
hours each vehicle is in operation, would require replacing vehicles on route during the service day. |
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| This
would impact the number pullouts required.
A pullout meaning a bus leaving the yard which has to be inspected by
driver, fueled and reinspected at end of working shift. |
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| Fuel
costs are based on current prices as of 5/20/08 excluding federal tax. |
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