HomeMy WebLinkAboutAgenda - 06-01-2021; 8-f - Resolution Regarding a Lease Purchase Agreement between Orange County Schools and Apple Financial Services to Provide Ipads for Pre-K and Kindergarten Students 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 1, 2021
Action Agenda
Item No. 8-f
SUBJECT: Resolution Regarding a Lease Purchase Agreement between Orange County
Schools and Apple Financial Services to Provide iPads for Pre-K and
Kindergarten Students
DEPARTMENT: Finance and Administrative Services
ATTACHMENT(S): INFORMATION CONTACT:
Attachment 1. Resolution Paul Laughton, (919) 245-2152
Gary Donaldson, (919) 245-2453
Todd Jones, Orange County
Schools, (919) 245-4100
PURPOSE: To adopt a resolution approving a lease purchase agreement between Orange
County Schools (OCS) and Apple Financial Services for the purchase of iPads in support of Pre-
K and Kindergarten students.
BACKGROUND: On February 22, 2021, the Orange County Schools Board of Education
approved the district entering into a lease agreement with Apple Financial Services to lease 500
iPads for PreK and Kindergarten. The district needs to replace its fleet of Apple iPads that have
been issued to Kindergartners. These devices have been critical in ensuring these students have
access to remote learning materials and in classroom instruction. At 4 years of age, the fleet is
now beyond its reasonable lifespan and needs to be upgraded to new devices. Funding includes
a buffer for use as loaners during repairs.
OCS has chosen the lease option to ensure more timely refreshes in the future. The selected
lease option offers a $1.00 purchase that the district may exercise at the end of the lease. The
devices can be purchased for $1.00 or traded for credit toward new purchases. For trade in,
Apple's Trade-In Program for education enables districts to build equity towards future purchases
by ensuring top trade in values are passed on.
Included is three years of AppleCare+ warranty coverage that covers:
• The iPad
• Battery
• Apple Pencil
• Apple Keyboard
• USB cable and power adapter
• Up to two (2) incidents of accidental damage per device per year.
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FINANCIAL IMPACT: The total lease purchase agreement is $314,879.60, and will be leased
over a 3-year period with a 0% interest rate. Annual lease payments are $104,959.87 in FY 2020-
21 and FY 2021-22, and $104,959.86 in FY 2022-23, and will be covered utilizing available funds
from the School district's local fund balance.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
The provision of computers for all students in OCS will help address inequities among students'
and families' access to digital resources.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts associated with the item.
RECOMMENDATION(S): The Manager recommends the Board adopt and authorize the Chair to
sign the resolution approving the lease purchase agreement between Orange County Schools
and Apple Financial Services.
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RES-2021-039 Attachment 1
RESOLUTION
ORANGE COUNTY BOARD OF COMMISSIONERS
ORANGE COUNTY,NORTH CAROLINA
WHEREAS, the Orange County Board of Education wishes to enter into a continuing
contract for financing with Apple Financial Services pursuant to N.C. Gen. Stat. § 115C-528 for the
purchase of certain computer hardware, software, and related equipment to be used for public school
purposes; and
WHEREAS,the contract will require the Board of Education to pay Apple Financial Services
up to $314,879.60 over the 2020-21, 2021-22, and 2022-23 fiscal years; and
WHEREAS, the Board of Education will pay Apple Financial Services in approximate
installments of$104,959.87 in the 2020-21 fiscal year, $104,959.87 in the 2021-22 fiscal year, and
$104,959.86 in the 2022-23 fiscal year; and
WHEREAS, the contract may be a continuing contract for capital outlay subject to the
provisions of N.C. Gen. Stat. §§ 115C-441(c1) and 115C-528, including the approval of the Orange
County Board of Commissioners;
NOW, THEREFORE, BE IT HEREBY RESOLVED, that the Orange County Board of
Commissioners approves the lease purchase agreement between Orange County Schools and Apple
Financial Services, and understands that Orange County Schools will use available funds from the
School district's local fund balance to meet the Apple Financial Services contract obligations, so long
as the amount the Board of Education shall be obligated to pay under that contract shall be generally
equal to the amounts noted above. Said funds obligated by this contract for fiscal years 2020-21,
2021-22, and 2022-23 shall be budgeted by the Board of Education for this purpose, and the Orange
County Board of Commissioners shall not be obligated to increase its annual appropriation to the
Orange County Board of Education by the amount due under the contract.
Adopted and resolved,this the day of , 2021 by the Orange County Board of
Commissioners.
Renee Price, Chair
Orange County Board of Commissioners
Laura Jensen
Clerk to the Board