HomeMy WebLinkAbout5.A.4. Re-purchase Agreement for the Unit 177, 2010 John Deere 6430 TractorCITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Michael Hullander, Public Works Superintendent
DATE: February 15, 2011
SUBJECT: Re- purchase agreement for the 2010 John Deere 6430 Tractor.
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INTRODUCTION:
Staff is requesting authorization to utilize the annual re- purchase agreement on unit #177 a 2010 John Deere
6430 Tractor from Ag Power Enterprises, Inc. for the estimated price of $10,847.81.
BACKGROUND:
Public Works has re- purchase agreements with Ag Power Enterprises, Inc. for 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 2010 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 595 hours of operation and staff is estimating an additional 50 hours
before re- purchase. We can only estimate at this time, the actual price may be slightly more or less. 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 2010 John
Deere 6430 Tractor for the estimated price of $10,847.81 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 2010 John
Deere 6430 Tractor for the estimated price of $10,847.81 with the funds to be expended from the Surface Water
Fund.
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Michael Hullander
Public Works Superintendent