HomeMy WebLinkAbout5.A.5. Re-purchase Agreement for the Unit 134, 2009 John Deere 5085 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 Unit #134, 2009 John Deere 5085 Tractor.
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INTRODUCTION:
Staff is requesting authorization to utilize the re- purchase agreement on unit #134 a 2009 John Deere 5085
Tractor from Ag Power Enterprises, Inc. for the estimated price of $7,994.25.
BACKGROUND:
Public Works has re- purchase agreements with Ag Power Enterprises, Inc. for three JD 5085 Tractors, three JD
1445 Mowers, one JD 6430 Tractor 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 18 month re- purchase agreement on the 2009 John Deere 5085 Tractor which is used for the
grooming of 41 ball fields, sweeping rinks, snow plowing of trails and parking lots. The re- purchase agreement
is for $4,000.00 plus tax up to 250 hours and $12.00 per hour after 250 hours. The tractor currently has 500
hours of operation and staff is estimating and additional 40 hours before re- purchase. Staff 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
Internal Service Equipment Fund.
ALTERNATIVES:
1. Authorize staff to utilize the re- purchase agreement with Ag Power Enterprises, Inc. on unit #134, 2009
John Deere 5085 Tractor for the estimated price of $7,994.25 with the funds to be expended from the
Internal Service Equipment Fund.
2. Deny the request.
3. Table for additional information.
RECOMMENDATION:
Staff recommends alternative number one.
ACTION REOUESTED:
Move to authorize staff to utilize the re- purchase agreement with Ag Power Enterprises, Inc. for unit #134, 2009
John Deere 5085 Tractor for the price of $7,994.25 with the funds to be expended from the Internal Service
Equipment Fund.
Michael Hullander
Public Works Superintendent