The client leases a large battery-operated floor cleaner, and the terms are for six years. At the end of the term, there is an option to purchase, but this won't be until after the Performance Period. Would this be considered a purchase, or do we need to actually pay it off and change the lease terms within the Performance Period?
Thanks,
Michelle
Trista Brown
Project DirectorWSP USA
449 thumbs up
June 29, 2016 - 6:50 pm
Leasing is a bit of a grey area, but since the item is a floor cleaning machine I don't think you'd count it at all under MRc2.2. You'd need to include it in the custodial equipment inventory for IEQc3.4 instead.
Mihir Parikh
CB&IMarch 7, 2017 - 10:25 am
How about leasing an energy start copy/printer machine?
Trista Brown
Project DirectorWSP USA
449 thumbs up
August 28, 2017 - 4:29 pm
Hi Mihir, I'd include the lease costs that were incurred during the performance period. So if you pay a monthly fee, you'd include the total amount of fee paid for all of the performance period months. If you made a single upfront payment, and that payment was within the performance period, you'd include that entire payment in the calculations. And you'd need to include all relevant leased office equipment (not just the items that comply with the credit sustainability criteria).