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Options two and three are the most logical of the three presented. After the initial cost of <br />start-up and purchasing sign-making equipment, they are almost equal. The replacement <br />cost of switching 3,080 sign blades, if we purchase them through a vendor, will be in the <br />neighborhood of $80,000. This spread out over a five-year replacement.pl~ would be <br />approximately $16,000 per year. Adding in costs for sign-making equipment would raise <br />this cost to $19,000 over the same period of time. , , <br /> <br />The space needed for a sign-making shop could easily be addressed as we renovate the <br />metal building at the public works site. <br /> <br />The only issue left to consider would be the cost of labor. At the present time, if we were <br />to make our own signs we would see a cost savings, on average, of $1.65 per sign blade <br />for materials. For example if a sign blade cost us $20.00 to make, we could buy it for <br />$21.65 fi.om our vendor. Our cost of $20.00 does not include any labor. We as a City <br />will have to decide if versatility and the convenience of a quicker response time, out <br />weighs the approximately $10.00 in labor charges per sign blade. <br /> <br />Committee Action: <br /> <br />Based upon discussion. <br /> <br />Reviewed by: <br /> <br />Public Works Supervisor <br />Director of Public Works <br />Finance Officer <br /> <br />PW: 05/18/99 <br /> <br />I[RA_FSII?OLIlusersklThielingI~IOICOUNCIL&IROAD&BRIk~ign Case. doc 05/14/99 <br /> <br /> <br />