Agenda 02-20-24; 8-e - Approval of Chromebook Lease Purchase Agreement for Chapel Hill-Carrboro City Schools

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 20, 2024 Action Agenda Item No. 8-e SUBJECT: Approval of Chromebook Lease Purchase Agreement for Chapel Hill-Carrboro City Schools DEPARTMENT: County Manager, Chapel Hill-Carrboro City Schools ATTACHMENT(S): INFORMATION CONTACT: Resolution to Approve Lease Purchase Agreement Kirk Vaughn, (919) 245-2153 Al Ciarochi, 919-967-8211 ext. 28231 PURPOSE: To adopt a resolution approving the Chapel Hill-Carrboro City Schools District lease agreement to purchase Chromebooks. BACKGROUND: Since 2014, the Chapel Hill-Carrboro City Schools (CHCCS) District has provided Chromebooks to students. At this point, the 10,830 Chromebooks are due for replacement for students in grades 211 through 12th. The district is intending to enter a five-year lease purchase agreement starting in FY 2025 to replace these Chromebooks. This agreement will be $5,734,570 over five years, with an annual payment of $1,147,114.08. The upcoming FY 2024-34 Capital Investment Plan (CIP) estimates that CHCCS will receive $1,955,639 in FY 2025 in Article 46 funds for technology investments, and $10,592,373 through the lease purchase period. The exact amount of funding the district receives will be subject to change each year due to changes in Article 46 sales tax performance, and changes in the average daily membership (ADM) excluding Charter Student formula for allocation between the two districts. Per NC General Statute 115C-441, for districts to engage in multi-year capital outlay agreements, they must first seek a resolution from the Board of County Commissioners. The attached resolution would bind the Board of Commissioners to appropriate sufficient funds to meet the amount of the contract. At its February 15, 2024 meeting, the CHCCS Board of Education approved the lease purchase agreement with Trafera, LLC, pending approval of the BOCC's resolution. FINANCIAL IMPACT: Funds will be appropriated through the district's capital budget and will be reflected in the FY 2024-34 Capital Investment Plan. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is associated with this item: • ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents.