HomeMy WebLinkAbout4.C.2. Authorize Utilization of Re-purchase Agreement for John Deere Mower and John Deere Tractor Consent Business
4• C. 2•
si I AK I'[E
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Mike Hullander, Public Works Superintendent
DATE: 02/19/2013
SUBJECT: Authorize Utilization of Re- purchase Agreement for John Deere Mower and John Deere Tractor (C & E)
Action Sought
Move to authorize staff to utilize the re- purchase agreements with Ag Power Enterprises, Inc. on unit # 152 a 2011
John Deere 1445 Mower and unit # 132 a 2011 5085 Tractor. The combined price of $12,776.29 to be expended
from the Internal Service Equipment Fund.
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
$4000.00 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.
Staff will be utilizing State Bid #41934 for the purchase of one new 2013 John Deere 1445 mower with an
additional broom for the building maintenance division to use during winter months. The cost for this re- purchase
including broom and tax is $8,244.79. The Internal Service Fund will be reimbursed the $3,720.64 cost of the
broom from the Building Maintenance Budget.
Staff will be using State Bid #54443 for the purchase of one new 2013 John Deere 5085 Tractor. We are
estimating an additional 20 hours above the 250 hour limit. The cost of this re- purchase is $4,531.50.
The total combined cost of the two re- purchase agreements is $12,776.29. The funds to be expended from the
Internal Service Equipment Fund.
Recommendation
Staff recommends using these re- purchase agreements.
Budget Impact
Equipment rent has been included in the 2013 budget for this equipment. Rent payments go into the Internal
Service Fund and these funds are use in the re- purchase agreements.
Relationship to Vision
C. Maintain the City's strong financial health.
E. Deliver effective and efficient public services by a staff of welltrained caring and professional employees.
Requested Action
Move to authorize staff to utilize the re- purchase agreements with Ag Power Enterprises, Inc. on unit #152 a 2011
John Deere 1445 Mower and unit #132 a 2011 5085 Tractor for the combined price of $12,776.29, with the funds
to be expended from the Internal Service Equipment Fund.