Agenda 05-21-24; 8-d - Approval of Chromebook Lease Purchase Agreement for Orange County Schools

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 21, 2024 Action Agenda Item No. 8-d SUBJECT: Approval of Chromebook Lease Purchase Agreement for Orange County Schools DEPARTMENT: County Manager, Orange County Schools ATTACHMENT(S): INFORMATION CONTACT: Resolution to Approve Lease Purchase Agreement Kirk Vaughn, (919) 245-2153 Ryan Miller, 919-732-8126 ext. 12603 PURPOSE: To adopt a resolution approving the Orange County Schools District lease agreement to purchase Chromebooks. BACKGROUND: Since 2012, the Orange County Schools (OCS) District has provided Chromebooks to students. At this point, the 6,800 Chromebooks are due for replacement for students in grades 3rd through 12t". The district is intending to enter a four-year lease purchase agreement starting in FY 2025 to replace these Chromebooks. This cost for this agreement will be $3,394,385.48 over four years, with an annual payment of $848,595.87. The upcoming FY 2024-34 Capital Investment Plan (CIP) estimates that OCS will receive $1,240,360 in FY 2025 in Article 46 funds for technology investments, and $5,267,145 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 North Carolina 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 April 22, 2024 meeting, the OCS Board of Education approved the lease purchase agreement with American Capital, 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.