HomeMy WebLinkAbout5.A.2. Re-Purchase Agreements for S-185 Bobcat and a 1445 MowerCITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Michael Hullander, Public Works Superintendent
DATE: December 20, 2010
SUBJECT: Authorize utilization of Re- purchase Agreements for Unit #147 a 2010 Melroe S -185 Bobcat
from Lano Equipment, Inc. and Unit #167 a 2009 John Deere 1445 Mower from Ag Power
Enterprises, Inc.
Below are the agreements with costs to date, with estimated additional hours for the 1445 mower.
Lano Equipment, Inc.
State Bid #442996 for 2011 Melroe S -185 Bobcat.
Bid Price $27,484.72
Less used 2010 S -185 Bobcat - 23,750.00
Tax 256.76
Total $ 3,991.48
Ag Power Enterprises, Inc.
State bid #442583 for 2011 John Deere 1445 Mower
Current hours: 475
-275
200 additional hours x $8.00 /per additional hour = $1,600.00
Trade + $4,000.00
Current Total $5,600.00
Est. additional hours before trade (50) x $8.00 /per additional hour = 400.00
Tax 412.50
Total estimated cost of trade $6,412.50
ets: Fs
ALTERNATIVES:
1. Authorize staff to utilize the re- purchase agreement with Ag Power Enterprises, Inc. on the 2010 Melroe
S -185 Bobcat and 2009 John Deere 1445 Mower for the total combined price of $10,403.98.
2. Deny the request.
3. Table for additional information.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the annual re- purchase agreement for $3,991.48 (one
new 2011 Melroe S -185 Bobcat) from Lano Equipment, Inc. and the 18 month agreement for $6,412.50 (one new
2011 John Deere 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 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. The Public Works Department
also has annual re- purchase agreements with Lano Equipment, Inc. on four Bobcats, the agreements are based on
the current State Bid Price of a new unit minus the trade -in value of a one year old unit.
RECOMMENDATIONS:
Staff recommends alternative number one.
ACTION REQUESTED:
1. Motion to authorize staff to utilize the re- purchase agreement with Ag Power Enterprises, Inc. on Unit
#167 a 2009 John Deere 1445 Mower and purchase one new 2011 John Deere 1445 Mower for the price
of $6,412.50 with the funds to be expended from the Internal Service Equipment Fund.
2. Motion to direct staff to utilize the re- purchase agreement with Lano Equipment, Inc. on Unit #147 a
2010 Melroe S -185 and purchase one new 2011 Melroe S -185 for the price of $3,991.48 with the funds to
be expended from the Storm Drainage Fund.
Michael Hu Lander
Public Works Superintendent