HomeMy WebLinkAbout5.B.1. Re-purchase Agreements for John Deere 1445 Mower and JOhn Deere 5085 Tractor �. ,
CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Superintendent
DATE: August 16, 2011
SUBJECT: Authorize utilization of Re- purchase Agreements for Unit No. 152 a 2010 John Deere 1445
Mower and Unit No. 132 a 2010 John Deere 5085 Tractor from Ag Power Enterprises, Inc.
INTRODUCTION:
Public Works is requesting council authorize staff to utilize the re- purchase agreements for $6,198.75
(one new 2011 1445 Mower) and $10,046.25 (one new 2011 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.
Agreement with Ag Power Enterprises, Inc.
State bid #442583 for New 2011 John Deere 1445 Mower.
Current hours: 451 plus est. add. hours: 49 equal 500 hours.
-275
225 x $8.00 $1,800.00
+$ 4,000.00
Total $5,800.00
Tax $ 398.75
Total cost of trade $6,198.75
State bid #443206 for New 2011 John Deere 5085 Tractor.
Current hours: 633 plus est. add. hours: 67 equal 700 hours.
-250
450 x $12.00 $5,400.00
+$4,000.00
Total $9,400.00
Tax $ 646.25
Total cost of trade $10,046.25
ALTERNATIVES:
1. Authorize staff to utilize the re- purchase agreements with Ag Power Enterprises, Inc. on unit #152 a 2010
1445 Mower and unit #132 a 2010 5085 tractor for the combined price of $16,245.00.
2. Deny the request
3. Table for 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 # 152 a 2010
John Deere 1445 Mower and unit #132 a 2010 5085 Tractor for the combined price of $16,245.00, with the funds
to be expended from the Internal Service Equipment Fund.
Michael Hullander
Public Works Superintendent
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