HomeMy WebLinkAbout5.A.2. Request to Utilize Re-purchase Agreement for the John Deere 1445 Mowerand a Bobcat S185
~\ """
CITY OF SHAKOPEE s: fj.;L.
MEMORANDUM
TO: Mayor & City Council CO~ISENT
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
DATE: May 2, 2006
SUBJECT: Request to utilize repurchase agreements for the John Deere 1445 Mower
and a Bobcat S185.
INTRODUCTION:
Public Works is requesting council authorization to utilize the repurchase agreement from
Siemon Implement, Inc for Unit #135 a John Deere 1445 mower. Public Works is also
requesting council authorization to utilize the repurchase agreement from Lano
Equipment, Inc. Unit # 154 a Bobcat S-185. The total cost ofthe two repurchases is not
expected to exceed $7,000.00.
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. Public Works also has repurchase agreements
with Lano Equipment, Inc. on three Melroe Bobcats.
John Deere 1445 Mower:
This mower is traded every 18 months at a cost of $2,500 plus $6.00 for every hour over
250 hours. Currently there are 236 hours on the mower. The total cost is not expected to
exceed $3,000.
The Internal Service Fund rental rate for 18 months is $3,150.00.
2006 BobcatS-185:
State Bid Pricing #435752 $23,233.00
Trade-In ($19.500.00)
Net Trade $3,733.00
Sales Tax $242.65
Total Cost $3,975.65
Currently there are 221 hours on the Bobcat and 400 hours or less are allowed on the
trade-in. We do not anticipate going over the 400 hours.
~:\ "-..
The Internal Service Fund rental rate for 12 months is $8,004.00.
Public Works 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.
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, lnc for
Unit # 135 a John Deere 1445 .Mower with a repurchase price of $2500.00 plus
$6.00 for every hour over 250 hours and authorize staff to use the repurchase
agreement with Lano Equipment, Inc. for Unit # 154 a 2006 Bobcat 8-185 with
the repurchase price of$3975.65 with both payments to be expended from the
Internal Service Fund.
2. Deny the request.
3. Table for additional information.
RECOMMENDATION:
Staff recommends alternative No.1.
ACTION REQUESTED:
Move to authorize staff to use the repurchase agreement with Siemon Implement,Inc for
Unit # 135 a John Deere 1445 Mower with a repurchase price of$2500.00 plus $6.00 for
every hour over 250 hours and authorize staff to use the repurchase agreement with Lano
Equipment, Inc. for Unit # 154 a 2006 Bobcat S-185 with the repurchase price of
$3975.65 with both payments to be expended from the Internal Service Fund.
~.~
Michael Hullander
Public Works Supervisor
,
.Ii'.l!f! I Bobcat Kvl)~ ~ ... ;\BI-r
EOUIPMENT~lNC. I c6... ~~; ~ jjo;ol. .'-~ ..
3021 W. 133rd St., ShakJpee, MN 55379 Tel. 952{445-6310 · 952/496-0263
6140 Hwy. 10 N.W., Ano~a, MN 55303 Tel. 763/323-1720 · 763/422-3949
LANO EQUIPMENT
3021 W. 133rd St.I' ShakOpee, MN 55379 INQUIRY
(952) 445-6310 \. Fax (952) 496-0263 DATE
TO. C i~ ot ~~ TEFlMSJJrsr ~o. ~
A1t~l/(;B~t: I DELlVERY~
(1\1 qsa- 0115:- \7)~~1j. . 0=>11 ::mRI 5 ~EO A EO.a,:
PHONE' qS"-iOl33."'<~l)u-r .
I
FAXt +
,
WE AFtE PLEASED TO QUOTE ON YOUR INQUIRY AS FOLLOWS:
I
QUANT1TV . DESORIPTION PRloe AMOUNT
. .\ ..... . . I . .Er. ... ~rt~Jnt4~I(Y357S~ "..'" ..... ..... . ...."
l. ...j... J.- l\$w..afu.... ." . ~6~~5..D~a.. ....... ..-.. .... .... ........ .
... '''.' ..I.. .\ '15\1O..~tffi.- .~/~..@.~b. -. ....... .-.... .. .
..,. ..... <SV\Sbt{\ '-nkJw~"I" .'. J b... J... l)tn_. ......... .
U~ . J ~
~ --
. u..:.. .~~~f.*~- -- .t)..{Q~t>>DJft.. .. .... ... . .-.
.\3"'~ ftIJ cx:Ji2.~1t)) --~- ..... ..... ..~ .. .. ... ..
. . ..._~~'\l.j.4 d'~., _.._~~.. 1SiclL)f-. c23, a33.~
r7) i
.0.......:-~...~...~.... ..I(j~b1:..:..a20~.. .5......~b.(er}.~l\.~J~...b~~.. ...... ..:..... ..:......-.,.... ...._..~ ...........
...... .._.,.. ...._ s..... .. . \ ..' . .
. ~ __..WD3.. ,.. ._Cfgg.~_. .-... -
.. .......... ...--' ..*.:... r,$aa.5J.l.-~.,YGD~..ct...~.........,......._.... ... ...... ~ ~
...... .. _.... . _........ .. ~.. ...._.. .._'''' ..__.... '_" ........: "'." . ._.. .u... ...". . _J... . .....1 ..... ... .sJ3>'S, .
.. ..... ...... ..". ..... .:.:.... ................... ......... "_'''' ..... ...' f_~"1-'-* 01: I#<5
: .. . ...... . ..... ....... .w.i.Ltl .~.{n~..... ". ~~.. ...
.... ........ ... . ~_. . ..... . W'" ._... ....... . ~ t7~,to.
.. .... .... __ . . ... : ... ....:. ...... . ....... . ... . 1-_~
: ...... ....... ..-.' .~~_.. ........ -~... ..-..,. ". .--- ...-.. .... '..'. .... ..." .-......-
;
I
,
Ql/01EDBY~ ~, 6: ACCEPTED BY:
ClUlCUtC<<CIICC<<lC<<l".lCUtuc. "(lllCcClllm<<I"lcJ.((II"CCm"CCUCClCCf",CCl<<CcctC,"I<<"IC"cnC<<,"I~~~~~ .JI>>>>>>t))>>>>>>n>>lllllltmUml1ltm1It>>lIII>>)I>>'IJ>>Ulmmttm>>mbllmmlt>>1I1'II11l
ccctCUCC""CClCftlftUt 'd"1I<<Ct6~ 6 6 '0 ~lCCt<<"<<CIt<<IIICC"c.mUfClCClIICCIICI"IC(ICII1C<<<<t1ICct'lmtICn.o.;,."'" l U ~ w d ! n b 3 0 U 'e llllmll~d S t : l 11190 0 l 'v . J d vnmn1
!
.-.... - .... .-- .... -- .--. ._. _.. ..--.. - .-. -....-..----
FROM: SIEMON IMPLEMENT INC.
-0. . 109350IdHwy. . 169BIW.
BEu,e PlAINE. MN 56011
Phone: (952) 8'13-2224
. .'J.800..633.439 F8l( (952) 873-4227
:IoH~ .......E.-:Mail:.siemOnim@frontiemet.net
Web: ht1p:1llddealer.deere.com/siemon
SUBJECT: ; -- .... '-... . DATE: .!/ - J ~ _ () ~
- i
,
;tI.t~2.:rD, J4 '1~ COMAf. ~Ic,<):- /l1DbJ~r 17~~7-d(
u)/ Lf ..lO,.:R - LIlI ~ T, .-i S ;. ~ ,90-0(1
Tc.:g 1 ()41-~ Hya. lJJi.'5~J-:- ":G-~II). . tCT 013/.00
TC 8-. 10(" 0 '<6 0 r Ci. '5.R. C"'v:r yc,f ~:;l.f,{JO
1!'i? II} $gg ~ ~~g I o.u)('.. H#. 5;)5...
7;<: ~ ~.h3.~ 3 l(<.t~~ ..~)~. h11~ J(.'7- ( . "'~~
. .. ~lJ) ~. '7~~. ec;,f< ~ l(l .
I ~
: ;)53.Cf~oO
I
. '-. M_' ...-. __ __. ....._ ... ; i
!
i
- I
I
,
-=:(ra.d<t i .
U J"WJ..l:l 4 5 ~72" d..tck ~ _
ct- ~q<!l ~ .t..~u.,p: ._
i . T(q:d.!!- ":1-0 f" . 400 ( 1)0 .'1- ~
H;f 1?ni. ~$o hM- ~,GO ~[-~OlU: ~~. ~-:. .~
;:; ,~t) ~
-
BY.
o ..__ ,..
.LNIDia1dIU NOBIS LZ6t&L8ZS6"XVTrs:o't"g'oo6lfllt''()'
~OO 111