HomeMy WebLinkAbout5.B.5. Authorize Repurchase Agreement for the John Deere 1445 Mower
CITY OF SHAKOPEE S. 8. s:
MEMORANDUM
TO: Mayor & City Council CONSENT
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
DATE: June 20, 2006
SUBJECT: Request to utilize repurchase agreements for the John Deere 1445 Mower.
INTRODUCTION:
Public Works is requesting counCil authorization to utilize the repurchase agreement from
Siemon Implement, Inc for Unit #167 a John Deere 1445 mower.
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 416 hours on the mower. The total cost is not expected to
exceed $4,000.
Public Works can only estimate the cost at this time because ofthe uncertainty in the
amount of hours on the equipment. Ifthe weather continues to stay dry, the equipment
will not be utilized as much as it would ifit rains more. 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, Inc for
Unit # 167 aJohn Deere 1445 Mower with a repurchase price of$2500.00 plus
$6.00 for every hour over 250 with payments to be expended from the Internal
Service Fund,
2. Deny the request.
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3. Table for additional information.
RECOMMENDATION:
Staff recommends alternative No.1.
ACTION REQUESTED:
Move to authorize staffto 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 with both payment to be expended from the Internal Service
Fund.
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Michael Hullander
Public Works Supervisor