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Staff says leasing exercise equipment could save roughly $210,000 in year one
Summary
Presenters ran lease-versus-buy scenarios for $275,000 of equipment and reported that leasing over an initial eight-month runway would reduce first-year capital needs, at a modeled monthly lease payment of roughly $8,550.
Staff walked the committee through lease and purchase scenarios for exercise equipment planned for the rec center. Chair (speaker 3) summarized the numbers and said leasing would reduce upfront capital needs while staff prepared a run-up to the center's opening.
Chair (speaker 3) stated, "that would save you about 210,000 for your 1st years to rent the equipment versus buying it," and explained an example where eight months of lease payments at about $8,550 per month would total roughly $68,400. Staff noted tradeoffs including maintenance obligations and warranty coverage under lease contracts.
Council members and staff discussed lease terms (36/48/60 months were mentioned) and the option to start leasing earlier (February) to be ready for a March opening. Staff emphasized warranty and maintenance provisions and recommended evaluating the long-term total cost of ownership before a final procurement decision.
