HomeMy WebLinkAbout4.D.4. Authorize Utilization of Re-purchase Agreemetns for Unit No.167-2011 John Deere 1445 Mower and Unit No. 131-2010 John Deere 5085 Tractor �� �. ��
CITY OF SHAKOPEE �;,,,�, � ro ,� �.���.��„
MEMORAND UM `-� � �'` - ° �
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TO: Mayor& City Council
Mark McNeill, City Administrator
FROM: Michael Hullander, Public Works Superintendent
DATE: May 15, 2012
SUBJECT: Authorize utilization of Re-purchase Agreements for Unit No. 167 -2011 John Deere 1445
Mower and Unit No. 131 -2010 John Deere 5085 Tractor from Ag Power Enterprises, Inc.
1NTRODUCTION:
Public Works is requesting council authorize staff to utilize the re-purchase agreements for$5,728.50
(one new 2012 1445 Mower) and$7,481.25 (one new 2012 5085 Tractor) 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 5085 Tractor agreements
are trade every 18 months for$4000.00 up to 250 hours and $12.00 per every additional hour after 250 hours.
Below are the agreements with costs to date, with estimated additional hours before purchase.
Agreement with Ag Power Enterprises, Inc.
State bid#444451 for New 2012 John Deere 1445 Mower.
Current hours: 319 plus est. add. hours: 126 equa1445 hours.
-275
170 x$8.00 $1,360.00
+$4,000.00
Total $5,360.00
Tax $ 368.50
Total cost of trade $5,728.50
State bid#443206 for New 2012 John Deere 5085 Tractor.
Current hours: 391 plus est. add. hours: 109 equal 500 hours.
-250
250 x $12.00 $3,000.00
+$4,000.00
Total $7,000.00
Tax $ 481.25
Total cost of trade $7,481.25
ALTERNATNES:
1. Authorize staff to utilize the re-purchase agreements with Ag Power Enterprises,Inc. on unit#167 a 20ll
1445 Mower and unit#131 a 2010 5085 tractor for the combined price of$13,209.75. .
2. Deny the request
3. Table far additional information
RECOMMENDATIONS:
Staff recommends alternative number one.
ACTION REQUESTED:
Move to authorize staff to utilize the re-purchase agreements with Ag Power Enterprises, Inc. on unit#167 a 2011
John Deere 1445 Mower and unit#131 a 2010 5085 Tractor for the combined price of$13,209.75, with the funds
to be expended from the Internal Service Equipment Fund.
Michael Hullander
Public Works Superintendent