HomeMy WebLinkAbout5.D.5. Authorize Utilization of Re-purchase Agreement for 2006 John Deere 5425 Tractor CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council F ~ 7
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Superintendent
DATE: December 18, 2007
SUBJECT: Authorize utilization of re-purchase agreement on Unit #134 a 2006 John
Deere 5425 Tractor from Siemon Implement, Inc.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the re-purchase agreement
from Siemon Implement, Inc. for Unit #167, a John Deere 5425 Tractor. The cost
estimate is not expected to exceed $6,300.00.
BACKGROUND:
Public Works has re-purchase agreements with Siemon Implement, Inc. on three JD 5425
Tractors, three JD 1445 mowers and one JD Gator. The 5425 Tractor agreements are
trade every 18 months for $3,500.00 up to 250 hours and $10.00 per every additional
hour after 250 hours.
Below are the agreements with costs to date, our estimated additional hours and estimated
final costs:
Agreement with Siemon Implement, Inc.
State bid #437546 for New 2008 John Deere 5425 Tractor
Current hours: 409
-250
159 additional hours x $10.00 /per additional hour = $1,590.00
+ 3 500.00
Current Total $5,090.00
Estimated additional hours until trade: 80 x $10.00 /per additional hour 800.00
Subtotal $5,890.00
Tax 382.85
Total estimated cost of trade $6,272.85
Internal Service Fund rental rate 18 months $9,037.50
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Siemon Implement, Inc.
on the 2006 John Deere 5425 Tractor for the price of $6,272.85.
2. Deny the request
3. Table for additional information
RECOMMENDATIONS:
Staff recommends alternative number one.
ACTION REQUESTED:
Authorize staff to utilize the re-purchase agreement with Siemon Implement, Inc. on the
2006 John Deere 5425 Tractor for the price of $6,272.85 with the funds to be expended
from the Internal Service Equipment Fund.
Michael Hullander
Public Works Superintendent