HomeMy WebLinkAbout5.D.2. Re-purchase agreement for Unit #132, 2008 John Dere 5425 Tractor
CITY OF SHAKOPEE S.O.J-.
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator CONSENT
FROM: Michael Hullander, Public Works Superintendent
DATE: April 20, 2010
SUBJECT: Re-purchase agreement for Unit #132, 2008 John Deere 5425 Tractor.
INTRODUCTION:
Staff is requesting authorization to utilize the re-purchase agreement on unit #132 a 2008 John Deere 5425
Tractor from Ag Power Enterprises, Inc. for the price of $8,443.13.
BACKGROUND:
Public Works has re-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 18 month re-purchase agreement on the 2008 John Deere 5425 Tractor which is used for the
grooming of 41 ball fields and is also used for snow plowing of trails and parking lots. The re-purchase
agreement is for $4,000.00 plus tax up to 250 hours and $12.00 per hour after 250 hours. The tractor currently
has 555 hours of operation and staff is estimating and additional 20 hours before re-purchase. Funding of the
re-purchase to be expended from the Internal Service Equipment Fund.
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. on unit #132,2008
John Deere 5425 Tractor for the price of $8,443.13 with the funds to be expended from the Internal
Service Equipment 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 unit #132,2008
John Deere 5425 Tractor for the price of $8,443.13 with the funds to be expended from the Internal Service
Equipment Fund.
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Michael ullander
Public Works Superintendent