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HomeMy WebLinkAbout4.C.3. Approve re-purchase agreements with Ag Power Enterprised, Inc. for a 2012 JD 1445 mower and 2012 JD 5085 Tractor and approve the purchase of one new Cozy Cab from Ag Power Enterprises, Inc. Consent Business 4. C. 3. SHAKOPE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Mike Hullander, Public Works Superintendent DATE: 11/06/2013 SUBJECT: Approve re-purchase agreements with Ag Power Enterprises, Inc. for a 2012 JD 1445 mower and 2012 JD 5085 Tractor and approve the purchase of one new Cozy Cab from Ag Power Enterprises, Inc. (C, E) Action Sought 1. Move to authorize staff to utilize the re-purchase agreements with Ag Power Enterprises, Inc. on Unit#167 a 2012 John Deere 1445 mower and Unit#131 a 2012 John Deere 5085 tractor for the combined price of$13,658.63, with the funds to be expended from the Capital Equipment Internal Service Fund. 2. Move to authorize the purchase of one new Cozy Cab from Ag Power Enterprises, Inc. for the price of$4.221.56, including tax and trade, with the funding to be expended from the Capital Equipment Internal Service Fund. Background Public Works has re-purchase agreements with Ag Power Enterprises, Inc. on four 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 per every additional hour over 275. Unit#167 currently has 550 hours of operation which equates to a re-purchase price, including tax, of$6,626.25. The 5085 tractor agreements are trade every 18 months for$4,000.00 up to 250 hours and$12.00 per every additional hour over 250. Unit#131 currently has 465 hours of operation which equates to a re-purchase price, including tax, of $7,032.38. The combined price is $13,658.63. Staff will be using State of Minnesota Contract Pricing#62399 for the 1445 mower and#54443 for the 5085 tractor. Staff is also requesting to purchase one new Cozy Cab from Ag Power Enterprises, Inc. for the price of$4,221.56, including tax and trade. The re-purchase agreement on the 1445 mowers only covers the tractor portion and mower attachment, the cab, snow blower and broom attachments are retained and replaced as needed, typically around ten years of service. The current cab purchased in early 2005 has rusted through in areas where it is mounted to the tractor and staff is requesting to replace at this time. Staff will be using State of Minnesota Contract Pricing #62399. Funding for these purchases to be expended from the Capital Equipment Internal Service Fund. Recommendation Staff recommends utilizing these agreements with Ag Power Enterprises, Inc. Budget Impact Funds will be expended from the Capital Equipment Internal Service 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 1. Move to authorize staff to utilize the re-purchase agreements with Ag Power Enterprises, Inc. on Unit#167 a 2012 John Deere 1445 mower and Unit#131 a 2012 John Deere 5085 tractor for the combined price of$13,658.63, with the funds to be expended from the Capital Equipment Internal Service Fund. 2. Move to authorize the purchase of one new Cozy Cab from Ag Power Enterprises, Inc. for the price of$4.221.56, including tax and trade, with the funding to be expended from the Capital Equipment Internal Service Fund. Attachments: