DATE: June 22, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
title
Consideration of Resolution 2015-38, Authorizing a Leased Equipment Schedule for FY2016 as an Amendment to COF Contract No. 2014-0171 with JPMorgan Chase (07/09/15 Budget & Finance).
body
Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning an amendment to Contract 2014-0171, which is a Master Lease agreement with JP Morgan Chase.
Background
In July, 2014, the City entered a Master Lease agreement with the bank to finance equipment and software in the FY2014-2015 budget. The Master Lease allows additional equipment schedules while the Master Lease is in effect. Capital equipment purchases in the FY2016 budget totaling $2.7 million have been identified as well suited for financing under the Lease agreement. A schedule of the new equipment will be itemized and provided to the Board and to the Bank.
Financial Impact
Leasing capital equipment, such as patrol cars, garbage trucks, utility trucks, and computer software, at current interest rates allows the City to accelerate its capital replacement program with minimal interest cost. Leasing payments are included in the FY2016 budget approved by BOMA on June 23.
Recommendation
rec
Staff recommends adopting the Resolution and authorizing the Mayor and City Administrator to execute the documents necessary to accomplish the amendment to the leasing contract.