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HomeMy WebLinkAbout4.C.4. Authorize use of Re-purchase Agreement for Unit No. 135 a 2012 John Deere 1445 Mower from Ag Power Enterprises, Inc. Consent Business 4. C. 4. SHAKOPEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Mike Hullander, Public Works Superintendent DATE: 10/01/2013 SUBJECT: Authorize use of Re-Purchase Agreement for Unit No. 135 a 2012 John Deere 1445 Mower from Ag Power Enterprises, Inc. (E) Action Sought Authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. on unit#135 a 2012 John Deere 1445 Mower for the price of$5,027.40 with the funds to be expended from the Internal Service Equipment Fund. Background Public Works has re-purchase agreements with Ag Power Enterprises, Inc. on three JD 5085 tractors, three JD 1445 mowers, one JD Gator and one JD 6430 tractor. The 1445 mower agreements are trade every 18 months for$4,000.00 up to 275 hours and $8.00 for every additional hour after 275 hours. These agreements provide excellent value with a cost lower than the Internal Service Fund rental rate and equipment that is always under warranty. The cost of the requested re-purchase with 88 additional hours and tax is for$5,027.40 with the funds to be expended from the Internal Service Equipment Fund. Staff will be using State of Minnesota pricing contract#62399. Recommendation Staff recommends utilizing the re-purchase agreement. Budget Impact Funding will be expended from the Internal Service Equipment Fund. Relationship to Vision C. Maintain the City's strong financial health. E. Deliver effective and efficient public services by a staff of welltrained caring and professional employees. Requested Action Authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. on unit#135 a 2012 John Deere 1445 Mower for the price of$5,027.40 with the funds to be expended from the Internal Service Equipment Fund. Attachments: