HomeMy WebLinkAbout5.A.3. Request to utilize Repurchase Agreements for the John Deere 5420 Tractor and John Deere 1445 Mower
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CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council CO~iSEf1T
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
DATE: September 18, 2007
SUBJECT: Request to utilize repurchase agreements for the John Deere 5425 Tractor
and John Deere 1445 Mower
INTRODUCTION:
Public Works is requesting council authorization to utilize the repurchase agreements
from Ag Power Enterprises/Siemon Implement, Inc for the 1445 mower and 5425 tractor.
The estimated cost of this repurchase will be around $12,000.00
BACKGROUND:
Public Works has been using repurchase agreements with Ag Power Enterprises/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
Ag Power Enterprises/Siemon Implement, Inc. on three John Deere 1445 Mowers and
three John Deere 5425 Series Tractors.
Below are the two agreements with the costs to date, our estimated additional hours, and
estimated final costs.
John Deere 1445 Mower:
Trade every 18 months for $3,500.00 up to 275 hours and $8.00 per every additional hour
after 275 hours.
Current hours: 316
-275
41 additional hours x $8.00/ per additional hour = $328.00
+$3.500.00
Current Total $3,828.00
Estimated additional hours until trade: 20 x $8.00 / per additional hour = $160.00
Subtotal $3,988.00
Tax $274.82
Total estimated cost of trade $4,247.22
Internal Service Fund rental rate 18 months $4,950.00
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.
.
John Deere 5425 Tractor:
Trade every 18 months for $3,500.00 up to 250 hours and $10.00 per every additional
hour after 250 hour.
Current hours: 411
-250
161 additional hours x $10.00/ per additional hour = $1,610.00
+ $3.500.00
Current Total $5,110.00
Estimated additional hours until trade: 100 x $10.00 / per additional hour $1.000.00
Subtotal $6,110.00
Tax $397.15
Total estimated cost of trade $6,507.15
Internal Service Fund rental rate 18 months $9,090.00
Public Works can only estimate the cost at this time. Ag Power Enterprises/Siemon
Implement, Inc. needs to know if we are going to use the agreements so they can order
the equipment.
AL TERNA TIVES:
1. Authorize staff to use the agreements.
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 agreements with Ag Power
Enterprises/Siemon Implement, Inc. on unit #135 a 2006 John Deere 1445 Mower and
unit #131 a John Deere 5425 Tractor with the total cost not to exceed $11,000.00.
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Michael ullander
Public Works Supervisor
I FROM: SIEMON IMPLEMENT INC.
. 10936 Old Hwy. 169 Blvd. .
) aELLE PLAlNE, MN 56011
Phone: (952) 873-2224
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'-it AI G-e,v i. \ J"tK . JoHN DEERE E-Mail: siemonim@frontiernet.net
Web; http;fljddealer.deere.com/siemon
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