Title
Vote on a request to adopt a resolution approving lease for mobile classroom units.
Abstract
Action Requested: Vote on a request to adopt a resolution approving lease for mobile classroom units.
Introduction & Background: The Chatham County Board of Education wishes to enter into an operational lease for mobile classroom units beginning with the 2016-17 school year pursuant to G.S. 115C-530 with Modular Technologies, Inc. in order to secure adequate classroom space at Northwood High School pending the opening of a new high school in 2021;
Discussion & Analysis: The lease of mobile classroom units will have a lease term that is in excess of three years and could obligate the Chatham County Board of Education to pay rental payments in the amount of $195,005.00 over the 57-month lease period.
The Chatham County Board of Education has approved the lease contingent upon the Commissioners’ approval of the same. By state law, the Board of Commissioners must approve a lease that is greater than three years.
Budgetary Impact: The total lease cost over six years is $195,005.00. The impact to the county is $151,700. The School System has agreed to make the FY 17 lease payment from its fund balance. The county will need to budget $33,600 for the lease payments for FY 2018-2021. A final payment of $17,300 will be need in FY 2022 for teardown and removal of the modular unit.
Recommendation: Vote on a request to adopt a resolution approving lease for mobile classroom units.