HomeMy WebLinkAbout4.B.4. Re-purchase Agreement for the 2011 John Deere 6430 Tractor CITY OF SHAKOPEE 1��• y
MEMORAND UM
TO: Mayor & City Council
Mark McNeill, City Administrator � � � A � � ��� �
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FROM: Michael Hullander, Public Works Supenntendent
DATE: March 6, 2012
' SUSJECT: Re-purchase agreement for the 2011 John Deere 6430 Tractor.
INTRODUCTION:
Staff is requesting authorization to utilize the annual re-purchase agreement on unit #177 a 2011 John Deere
6430 Tractor from Ag Power Enterprises, Inc. for the estimated price of $8,282.81.
BACKGROUND:
Public Works has re-purchase agreements with Ag Power Enterprises, Inc. for one JD 6430, three JD 5085
Tractors, three JD 1445 Mowers and one JD Gator. 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 2011 John Deere 6430 Tractor which is used for the mowing
of county and city 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 396 hours of operation and staff is estimating an additional 50 hours
before re-purchase. We can only estimate at this time, but we should remain under 500 hours. Funding of the
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 2011 John
Deere 6430 Tractor for the price of $8,282.81 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 REQUESTED:
Move to authorize staff to utilize the re-purchase agreement with Ag Power Enterprises, Inc. for the 2011 John
Deere 6430 Tractor for the price of $8,282.81, with the funds to be expended from the Surface Water Fund.
Michael Hul der
Public Works Superintendent