HomeMy WebLinkAbout5.B.1. Re-purchase agreement for the 2009 John Deere 6430 Tractor
CITY OF SHAKOPEE s: l3. J~
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator dY.{'
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Michael Hullander, Public Works Superintendent '<L44" tJi; (,'
FROM:
DATE: March 16, 2010
SUBJECT: Re-purchase agreement for the 2009 John Deere 6430 Tractor.
INTRODUCTION:
Staff is requesting authorization to utilize the annual re-purchase agreement on unit #177 a 2009 John Deere
6430 Tractor from Ag Power Enterprises, Inc. for the price of $8,282.82.
BACKGROUND:
Public Works hasre-purchase agreements with Ag Power Enterprises, 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 an annual re-purchase agreement on the 2009 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 currently has 490 hours of operation and staff does not believe we will go over the 500 hours
before re-purchase. Funding ofthe re-purchase to be expended from the Surface Water Fund.
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. on the 2009 John
Deere 6430 Tractor for the price of $8,282.82 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 Ag Power Enterprises, Inc. for the 2009 John
Deere 6430 Tractor for the price of$8,282.82 with the funds to be expended from the Surface Water Fund.
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Michael Hullander
Public Works Superintendent