HomeMy WebLinkAbout5.B.1. Re-purchase Agreement for the 2007 John Deere 6430 Tractor
CITY OF SHAKOPEE S. 6. J.
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator C"~'~S~ArT
Bruce Loney, Public Works Director Vj" F..'
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FROM: Michael Hullander, Public Works Superintendent
DATE: March 17, 2009
SUBJECT: Re-purchase agreement for the 2008 John Deere 6430 Tractor.
INTRODUCTION:
Staff has been able to secure an annual re-purchase agreement on the 2008 John Deere 6430 Tractor from
Siemon Implement, Inc. for the price of$8,253.75. Staffis requesting Council authorization to proceed with the
re-purchase_
BACKGROUND:
Public Works has re-purchase agreements with Siemon Implement, Inc. for three JD 5425 Tractors, three JD
1445 Mowers and one JD Gator. Public Works also has re-purchase agreements with Lano Equipment, Inc. on
four Bobcats. Staff believes the agreements are of excellent value as they are typically less than the internal
service fund rental rate and provide us with equipment that is always under warranty.
Staff has secured an annual re-purchase agreement on the 2008 John Deere 6430 Tractor which is used for the
mowing of county right of way, ditches, and storm water ponds. The tractor is also used for snow plowing of
parking lots. The re-purchase agreement is for $7,750.00 per year plus tax up to 500 hours and $16.00 per hour
after 500 hours. The tractor is one year old and has seen a busy mowing and plowing season and currently has
480 hours of operation. Staff does not believe we will go over the 500 hours before re-purchase.
If the tractor was purchased through the Equipment Fund the annual rental rate would be $10,340.00.
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Siemon Implement, Inc. on the 2008 John
Deere 6430 Tractor for the price of $8,253.75 with the funds to be expended from the Surface Water
Fund.
2. Deny the request.
3. Table for additional information.
RECOMMENDATION:
Staff recommends alternative number one.
ACTION REOUESTED:
Move to authorize staff to utilize the re-purchase agreement with Siemon Implement, Inc. for the 2008 John
Deere 6430 Tractor for the price of $8,253.75 with the funds to be expended from the Surface Water Fund.
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Michael Hullander
Public Works Superintendent