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HomeMy WebLinkAbout4.C.3. Authorize Use of Re-purchase Agreement for the 2012 John Deere 6430 Tractor Consent Business 4. C. 3. SHAKO! ;i= TO: Mayor and City Council Mark McNeill, City Administrator FROM: Mike Hullander, Public Works Superintendent DATE: 04/02/2013 SUBJECT: Authorize Use of Re- purchase Agreement for the 2012 John Deere 6430 Tractor (C & E) Action Sought Move to authorize staff to utilize the re- purchase agreement with Ag Power Enterprises, Inc. for the 2012 John Deere 6430 Tractor for the price of $8,453.81. The funds to be expended from the Surface Water Fund. Background Public Works has re- purchase agreements with Ag Power Enterprises, Inc. for one JD 6430, 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 provides us with equipment that is always under warranty. The annual re- purchase agreemnet on the John Deere 6430 Tractor 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 510 hours and we estimate no additional hours before re- purchase. Funding for this purchase is to be expended from the Surface Water Fund. Recommendation Staff recommends utilizing the re purchase agreement. Budget Impact Funding is allocated from the Surface Water Fund. 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 agreement with Ag Power Enterprises, Inc. for the 2012 John Deere 6430 Tractor for the price of $8,453.81. The funding for this purchase to be expended from the Surface Water Fund. Attachments: