HomeMy WebLinkAbout15.C.5. Re-purchase Agreement Agreement for John Deere Mower and Gator
IS: C.j--:
CITY OF SHAKOPEE
MEMORANDUM
TO: Mayor & City Council CONSENT
Mark McNeill, City Administrator
Bruce Loney, Public Works Director
FROM: Michael Hullander, Public Works Supervisor
SUBJECT: Re-purchase Agreements for John Deere 1445 Mower and John Deere
Gator
DATE: April 20, 2004
INTRODUCTION:
Public Works is requesting council to enact the re-purchase agreements on the John
Deere 1445 Mower for the price of $2,675.28 and also the John Deere Gator for the price
of$I,597.50.
BACKGROUND:
Public Works staffhas requested and received approval from council to enter into re-
purchase agreements from vendors when they are available. Public Works has entered
into agreements with Siemon Implement, Inc. on the four tractors and two mowers and
also with Lano Equipment, Inc. on the three bobcats.
Public Works previously enacted the agreements without taking the agreements back to
council because the dollar amount was less than what was required for council action and
also because we received approval to enter into these agreements. Greg V oxland has
informed staff that we have been in error in our assumptions and that we need to take the
trade-in value of the equipment plus the re-purchase price which makes the total dollar
amount greater than $10,000.00 and would need council action.
The agreements on the John Deere 1445 3l1d the John Deere Gator have already been
acted on but staffneeds council to formally approve enacting these two agreements. Staff
will be bringing all future re-purchases back to council for approval.
The re-purchase agreement on the John Deere 1445 Mower at 18 months is for $2,500.00
up to 250 hours and $6.00 for every hour above 250 hours. The 1445 Mower had 252
hours so the re-purchase price is for $2,675.28 with tax. The rental rate Public Works is
charged in the Internal Service Fund at 18 montlJ.s is approximately $6,559.00. There is.a
significant savings to thetax payer and Public Works has a mower with a full warranty.
The re-purchase agreement on the John Deere Gator is at 12 months for $1,500.00 up to
250 hours and $6.00 for every additional hour above 250 hours. The John Deere Gator
had 250 hours so the re-purchase price is for $1,597.50 with tax. Public Works has an
agreement with Vision Shakopee to pay the first 250 hours with Public Works paying for
any additional hours above 250. Vision Shakopee has budgeted for this re-purchase and
has already been sent an invoice. Because the John Deere Gator did not go over 250
hours there will be no cost to the city for this re-purchase.
ACTION REQUESTED:
Motion to direct staff to enact the re-purchase agreements with Siemon Implement, Inc.
on the John Deere 1445 Mower for the price of $2,675.28 and also on the John Deere
Gator for the price of $1 ,597.50 with the first 250 hours to be paid by Vision Shakopee as
per agreement.
~9'~~
Michael Hullander
Public Works Supervisor