HomeMy WebLinkAboutAgenda 06-03-2025; 8-i - Approval of Staff Computer Lease Purchase Agreement for Orange County Schools 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 3, 2025
Action Agenda
Item No. 8-i
SUBJECT: Approval of Staff Computer 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
PURPOSE: To adopt a resolution approving the Orange County Schools District lease agreement
to replace staff computers.
BACKGROUND: Orange County Schools (OCS) is entering into a contract to replace staff
computers. The district proposes to enter into a four-year lease purchase agreement starting in
FY 2026 to replace these computers. This agreement will be over four years for $1,901,658.88,
with an annual payment of$474,414.72. The upcoming FY 2025-35 Capital Investment Plan (CIP)
estimates that OCS will receive $1,235,254 in FY 2026 in Article 46 funds for technology
investments, and $5,245,461 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 school 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 the sufficient funds to
meet the amount of the contract. At its May 19, 2025 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 2025-35 Capital Investment Plan.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 5: PUBLIC EDUCATION/LEARNING COMMUNITY
OBJECTIVE 5. Invest in and implement a plan that supports schools operational and
facility funding needs.
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 staff computers.
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RES-2025-027
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 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 one million, nine hundred and one thousand,
six hundred fifty eight dollars and eighty-eight cents ($1,901,658.88) over the 2026, 2027, 2028,
and 2029 fiscal years; 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. so long as the amount the Orange County Board of Education shall be obligated to pay
under that contract shall not exceed the amounts recited above. 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 2026, 2027, 2028, and 2029 shall be
budgeted by the Orange County 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 this contract with American Capital
Financial Services, Inc.
Resolved, this day of 2025 by the Orange County Board of
Commissioners.
Jamezetta Bedford, Chair