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Shakopee City Council
February 21, 2017
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| | | | | | | | | FROM: | Michael Hullander, Public Works Superintendent | | TO: | Mayor and City Council |
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| | | | | | | | Subject:
*Re-purchase Agreement for Tractor | | |
| | | | | | | | Policy/Action Requested:
Approve use of re-purchase agreement for unit #143 a John Deere 5085 tractor from Ag Power Enterprises, Inc. for the price of $9,500.00, the funding to be expended from the Capital Equipment Internal Service Fund. | | |
| | | | | | | | Recommendation:
Recommend approval. | | |
| | | | | | | | Discussion:
The re-purchase agreement with Ag Power Enterprises, Inc. on the John Deere 5085 tractor is at two years for $4,000.00 up to 250 hours and $12.00 for every additional hour thereafter. Unit #143 has 578 hours at this time which comes to $7,936.00, with an additional $1,200.00 for the removal and re-installation of the La-forge front mounted power take-off and three point hitch, the total cost is $9,136.00. The annual cost of this re-purchase agreement is less than the rental rate required in the Capital Equipment Internal Service Fund for replacement at ten years of service. | | |
| | | | | | | | Budget Impact:
Funding to come from the Capital Equipment Internal Service Fund. | | |
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