HomeMy WebLinkAbout5.C.4. Repurchase Agreement on John Deere 5085 Tractor and John Deere 1445 Mower
CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Michael Hullander, Public Works Superintendent
DATE: September 21, 2010
SUBJECT: Authorize utilization of Re-purchase Agreements for one 2009 John Deere 5085 Tractor and one
2009 John Deere 1445 Mower from Ag Power Enterprises, Inc.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the 18 month re-purchase agreement for $7,276.05
(one new 2010 John Deere 5085 Tractor) and $5,814.00 (one new 2010 1445 Mower) from Ag Power
Enterprises, Inc.
BACKGROUND:
Public Works has re-purchase agreements with Ag Power Enterprises, Inc. on three JD 5085 Tractors, three JD
1445 Mowers, one JD Gator and one JD 6430 Tractor. The 5085 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, with estimated additional hours.
Ag Power Enterprises, Inc.
State bid #443206 for New 2010 John Deere 5085 Tractor
Current hours: 434
+50 estimated additional hours before re-purchase
484
-250
234 additional hours x $12.00 /per additional hour =
Current Total
Tax
Total estimated cost of trade
State bid #442583 for New 2010 John Deere 1445 Mower
Current hours: 455
-275
180 additional hours x $8.00/per additional hour=
Current Total
Tax
Total estimated cost of trade
$2,808.00
+ 4 000.00
$6,808.00
$ 468.05
$7,276.05
$1,440.00
+ $4,000.00
$5,440.00
374.00
$5,814.00
ALTERNATIVES:
1. Authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. on the 2009 John
Deere 5085 Tractor and 2009 1445 Mower for the total combined price of $13,090.05.
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 Ag Power Enterprises, Inc. on the 2009 John Deere 5085
Tractor and 2009 John Deere 1445 Mower for the combined price of $13,090.05 with the funds to be expended
from the Internal Service Equipment Fund.
• ~~
Michael Hullander
Public Works Superintendent