AGENDA CAPTION:
Title
Consider approval of Resolution 2022-49R, approving a Master Lease-Purchase Financing Agreement with J.P. Morgan Chase Bank, N.A. for the financing of a digger derrick, two bucket trucks, and a wire tensioner for use by the Electric Utility Division of the Utilities Department to be financed in the amount of $855,875.59, inclusive of interest, for a seven-year term; authorizing the City Manager or her designee to execute all appropriate documents associated with this transaction; and declaring an effective date.
Body
Meeting date: March 1, 2022
Department: Utilities Department, Tyler Hjorth - Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $122,267.94 first payment installment due March 2022
Account Number: 21006319.60125
Funds Available: $174,835
Account Name: Equipment
Fiscal Note:
Prior Council Action: Approval of FY22 Budget which included capital outlay requests for these items.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Choose an item.
Choose an item.
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
San Marcos Electric Utility Master Plan
Background Information:
Under separate Agenda Item on this date March 1, 2022, is the following equipment to be purchased via this finance agreement: (2) bucket trucks, a wire tensioner, and a digger derrick from Altec Industries, Inc.
The City received proposals to finance the listed equipment for the Electric Utility Division, Utilities Department. Of proposals received with the best interest rate, JP Morgan Chase, NA offered an interest rate of 1.959% for a seven (7) year term. The total amount for the equipment is $808,092.00 plus interest of $47,783.59 equals the total amount to be financed and paid by the City at $855,875.59 at the conclusion of the seven-year agreement.
Payments will be made annually with the first payment due March 7, 2022 (FY22), pending the approval of this resolution.
Council Committee, Board/Commission Action:
Click or tap here to enter text.
Alternatives:
Click or tap here to enter text.
Recommendation:
Staff recommends approving the financed purchase agreement between the City and JP Morgan Chase, NA.