HomeMy WebLinkAbout5.D.2. Authorize Re-Purchase Agreement for Unit #152, a John Deere 1445 Mower
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CITY OF SHAKOPEE
MEMORANDUM CO"~~~NT
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TO: Mayor & City Council ";, <. ,,{
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
DATE: January 16,2007
SUBJECT: Request to Utilize Repurchase Agreement for Unit # 152, a John Deere
1445 Mower.
INTRODUCTION:
Public Works is requesting council authorization to utilize the repurchase agreement;from
Siemon Implement, Inc for Unit # 152, a John Deere 1445 mower. The cost estimate is
not expected to exceed $4,400.00.
BACKGROUND:
Public Works has been using repurchase agreements with Siemon Implement, Inc. for a
number of years and find them to be of excellent value to save tax dollars on maintenance
costs. All vehicles Public Works purchases through these agreements are covered with
full warranties. Public Works currently has agreements with Siemon Implement, Inc. on 7
pieces of equipment including three John Deere 1445 Mowers, three John Deere 5400
Series Tractors, and one John Deere Gator.
John Deere 1445 Mower:
This mower is traded every 18 months at a cost of$3,500 plus $8.00 for every hour over
275 hours. Currently there are 352 hours on the mower. The total cost is not expected to
exceed $4,400.00.
PublicW orks can only estimate the cost at this time because of the uncertainty in the
amount of hours on the equipment. Staff needs authorization to utilize agreements before
the equipment can be ordered.
The Internal Service Fund rental rate for 18 months is $4,762.50.
As an informational item; the City of Lakeville also has agreements with Siemon
Implement, Inc. on the 1445 mowers. Lakeville's agreement is for $4,500.00 for 6
months, $8.00 after 275 hours. The City of Shakopee's agreement is based on the better
condition of our equipment at the time ofre-purchase.
VISIONING RELATIONSHIP:
Goal E "Financially Strong."
Strategy 10 "Ensure City's fiscal health."
ALTERNATIVES:
1. Authorize staff to use the repurchase agreement with Siemon Implement, Inc for
Unit # 152 a John Deere 1445 Mower with a repurchase price of$3500.00 plus
$8.00 for every hour over 275 hours. The payment to be expended from the
Internal Service Equipment Fund.
2. Deny the request.
3. Table for additional information.
RECOMMENDATION:
Staff recommends alternative No.1.
ACTION REOUESTED:
Move to authorize staff to use the repurchase agreement with Siemon Implement, Inc for
Unit # 152 a John Deere 1445 Mower with a repurchase price of $3500.00 plus $8.00 for
every hour over 275 hours with the payment to be expended from the Internal Service
Equipment Fund. ~,~
Michael Hullander
Public Works Supervisor