HomeMy WebLinkAbout5.D.1. Re-purchase Agreement on John Deere 5425 Tractor and 1445 Mower
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CITY OF SHAKOPEE
MEMORANDUM co~msr-~~T
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TO: Mayor & City Council
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Superintendent
DATE: June 23, 2009
SUBJECT: Authorize utilization of Re-purchase Agreements for one 2007 John Deere 5425 Tractor and one
2007 John Deere 1445 Mower from Siemon Implement, Inc.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the annual re-purchase agreement for $9,768.18 (one
new 2009 John Deere 5085 Tractor) and $5,785.08 (one new 20091445 Mower) from Siemon Implement, Inc.
BACKGROUND:
Public Works has re-purchase agreements with Siemon Implement, Inc. on three JD 5425 Tractors, three JD 1445
mowers, one JD Gator and one JD 6430 Tractor. The 5425 Tractor agreements are trade every 18 months for
$4,000.00 up to 250 hours and $12.00 per every additional hour after 250 hours. The 1445 Mower agreements are
trade every 18 months for $4,000.00 up to 275 hours and $8.00 per every additional hour after 275 hours.
Below are the agreements with costs to date, including estimated additional hours.
Agreement with Siemon Implement, Inc.
State bid #440792 for New 2009 John Deere 5085 Tractor
Current hours: 531
-250
281 additional hours x $12.00 I per additional hour = $3,372.00
Estimated additional hours 150 x $12.00/per additional hour = $1,800.00
+ $4.000.00
Total $9,172.00
Tax $ 596.18
Total estimated cost of trade $9,768.18
Internal Service Fund Rental Rate 18 months $10,566.00
State bid #440435 for New 2009 John Deere 1445 Mower
Current hours: 414
-275
139 additional hours x $8.00/per additional hour = $1,112.00
Estimated additional hours 40 x $8.00/per additional hour = $ 320.00
+ $4.000.00
Total $5,432.00
Tax $ 353.08
Total estimated cost of trade $5,785.08
Internal Service Fund Rental Rate 18 months $5,832.00
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ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Siemon Implement, Inc. on the 2007 John Deere
5425 Tractor and 20071445 Mower for the total combined price of$15,553.26.
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 2007 John Deere 5425
Tractor and 2007 John Deere 1445 Mower for the combined price of$15,553.26 with the funds to be expended
from the Internal Service Equipment Fund.
ullander
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