HomeMy WebLinkAboutAgenda 05-21-24; 8-d - Approval of Chromebook Lease Purchase Agreement for Orange County Schools 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.
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ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board adopt and authorize the
Chair to sign the resolution binding the County to appropriate sufficient funds to allow the Orange
County Schools District to enter into a lease purchase agreement for Chromebooks.
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RES-2024-030
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 capital outlay under N.C. Gen. Stat. § 115C-528 with CDWG and its assignee
American Capital Financial Services, Inc., for the purchase and financing of certain computer
hardware, software, and related equipment to be used for public school purposes; and
WHEREAS, the contract will require the Orange County Board of Education to pay
American Capital Financial Services, Inc., a total of three million, three hundred ninety-four
thousand, three hundred eighty-five dollars and forty-eight cents ($3,394,385.48) over the 2024,
2025, 2026, and 2027 fiscal years, as reflected in more detail on the attached Schedule and
subject to certain credits that the Board of Education may receive from American Capital
Financial Services, Inc.; 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 agrees to appropriate sufficient funds to the Orange County Board of Education
in ensuing fiscal years to meet the contract obligations with American Capital Financial Services,
Inc., or CDWG's assignee, so long as the total amount appropriated by the Orange County Board
of Commissioners for this purpose shall not exceed three million, three hundred ninety-four
thousand, three hundred eighty-five dollars and forty-eight cents ($3,394,385.48). Said funds
shall be a part of, and not in addition to, regular appropriations made to the Orange County
Board of Education. Said funds obligated by this contract for fiscal years 2024, 2025, 2026, and
2027 shall be budgeted by the Orange County Board of Education for this, and no other, purpose
and shall reflect any credits that the Board of Education may receive from American Capital
Financial Services, Inc. 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 this contract.
Resolved, this day of 2024 by the Orange County Board of
Commissioners.
Jamezetta Bedford, Chair
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EXHIBIT 1
Property Description and Payment Schedule
Re: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement between American
Capital Financial Services, Inc. and Orange County Board of Education.
THE PROPERTY IS AS FOLLOWS: The Property as more fully described in Exhibit A incorporated herein by
reference and attached hereto. It includes all replacements, parts, repairs, additions, accessions and
accessories incorporated therein or affixed or attached thereto and any and all proceeds of the foregoing,
including, without limitation, insurance recoveries.
PROPERTY LOCATION:
Address
City,State Zip Code
USE: Technology - This use is essential to the proper, efficient and economic functioning of Lessee or to the
services that Lessee provides; and Lessee has immediate need for and expects to make immediate use of
substantially all of the Property, which need is not temporary or expected to diminish in the foreseeable future.
Lease Payment
Schedule
Total Principal Amount: $3,147,612.90
Termination
Payment Lease Principal Interest Amount
No. Due Date Payment Portion Portion (After Making
Payment for said
Due Date
1 1-Jun-2024 848,595.87 848,595.87 0.00 NA
2 1-Jun-2025 848,595.87 727,287.92 121,307.95 NA
3 1-Jun-2026 848,596.87 765,664.36 82,932.51 830,246.69
4 1-Jun-2027 848,596.87 806,064.75 42,532.12 0.00
TOTALS 3,394,385.48 3,147,612.90 246,772.58
Interest Rate: 5.277%
EXHIBITA
Property Description
Six Thousand Eight Hundred (6,800) LVO 300E MT8186 Chrome MC00019341 with Cell Tech Service
Thirteen Thousand Six Hundred (13,600) Mightyskins protective vinyl film adhesive