Loading...
HomeMy WebLinkAboutTR-21-90 tffTlf{) : DATE: fHffiT #: SUB..ECT : TOWN OF NEWCASTLE REPORT File # II) ,:(, 7 Res. # By-Law # 9tJ - 75 GENERAL PURPOSE AND ADMINISTRATION COMMITTEE April 23, 1990 TR-21-90 FILE #: PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS RECOt-V-iENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That Report TR-21-90 be received; 2. That Council accept the written proposal (Attachment "A") from O.E. Oshawa Inc., Oshawa, Ontario, to lease one (1) only Canon NP6650 with twenty (20) bin sorter, one (1) only Canon NP8580 with fifty (50) bin sorter and one (1) only Canon NP3325 at a combined quarterly cost of $3,621.46 plus provincial Sales Tax, for a period of sixty-six (66) months with a buyout option of $1.00 upon lease expiry. 3. That the procedures set out in the Purchasing By-Law #82-92, Section 5, Paragraph 04, be waived for this particular transaction; 4. That the attached By-Law (Attachment "B") authorizing the Mayor and Clerk to execute the Agreement be approved; 714 Page - 2 - TR-21-90 PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS 5. That in accordance with Section 64 of the Ontario Municipal Board Act, authorization be obtained from the Ontario Municipal Board prior to the execution of this Agreement; and 6. That the funds be drawn from the appropriate 1990 budgeted Capital Lease or Operating Accounts which are allocated for the payment of a photocopy lease. BACKGROUND AND COMMENT: For the past two (2) years, the Town of Newcastle's photocopier requirements have been handled by requesting proposals from the various area dealers. For each of these two (2) years, the successful bidder was Office Equipment (Canon). As a result of a series of negotiations, staff have been able to obtain from Office Equipment a committment of 1989 pricing for 1990 equipment. In addition, Office Equipment is currently offering a promotion which allows free service for one (1) year or 100,000 copies for each new NP8580 or NP6650 leased or purchase. The savings to the Town of Newcastle, on service, are estimated at $2,000.00. In addition to the above noted price benefits, the acquisition of Canon photocopiers further standardizes photocopiers throughout various Departments of the Town of Newcastle. The Departments and their photocopier requirements are as follows: 715 Page - 3 - TR-21-90 PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS Clerk's Department The existing NP6650 was leased by the Town in April, 1989. Since that time the volume of photocopies of the Clerk's Department has increased substantially. The current monthly volume of the Clerk's Department averages between 43,000 to 58,000 copies. As this machine is not designed to handle this volume it is proposed that it be transferred to the Treasury Department and that a new lease be entered into for a NP8580. The existing NP6650 is designed to handle up to approximately 40,000 copies per month were as the NP8580 will handle 100,000 copies per month. Should the NP6650 remain in the Clerk's Department it is the opinion of staff and the manufacturers service technicians that the life expectancy of this machine will be greatly reduced. The quarterly lease payment of the NP8580 is $1,976.39 plus Provincial Sales Tax. The quarterly lease payment of the existing NP6650 is $1,099.62 plus provincial Sales Tax. The required funds have been allocated in the 1990 Capital Budget. Treasurv De~artment The existing NP500 is owned by the Town and has outlived its usefulness. Excessive breakdowns have affected the administrative production of the office staff. The existing monthly volume of the Treasury Department is 25,000 to 30,000 copies. The unit recommended by Canon for this volume is an 716 Page - 4 - TR-21-90 PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS NP6650. In order to avoid any unnecessary additional cost, it is proposed that the existing NP6650 located in the Clerk's Department be transferred to the Treasury Department. The quarterly lease payment of this unit is $1,099.62 plus Provincial Sales Tax. The required funds have been allocated in the 1990 Capital Budget. It is also proposed that the NP500 be traded-in at a value of $1,000.00, as offered by O.E. Oshawa Inc., to offset the price of the new equipment. The market value of this unit if sold at auction or by tender would be approximately $200.00. Community Services/Public Works The existing NP500 is owned by the Town and is shared between Community Services and Public Works. This unit is no longer able to handle the combined volume of these two (2) Departments. It is proposed that an additional NP6650 be leased for this area. The quarterly lease payment of the new unit is $1,140.02 plus Provincial Sales Tax. Note, the quarterly payment for this unit is slightly higher than that of the existing NP6650 due to increased interest rates. However, the total purchase price remains the same. The current monthly volume of these two (2) Departments is 20,000 to 25,000 copies. The required funds have been provided for in the 1990 Current Operating Budgets of these two (2) Departments. It is also proposed that the existing NP500 at this location be transferred to Administrator's/Mayor's 717 Page - 5 - TR-21-90 PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS Departments. The NP210 currently located in the Administrator's/Mayor's Departments will be retained by the Town and transferred to an appropriate area where needed. Newcastle Public Library - Bowmanville Branch The Library's current lease for the Savin photocopier is due to expire August, 1990. Although there is a buyout option of $751.00 offered by the leasing company, this machine no longer meets the needs of the Library. Once again, excessive breakdowns have effected the administrative production of the office staff. It is proposed that the new unit be leased by the Town of Newcastle on behalf of the Library. Office Equipment have suggested a coin operated NP3325 for this area. Applicable costs to then be charged back. This enables the Library to take advantage of lower pricing received by the Town of Newcastle. The current monthly volume of the Library is 8,000 copies per month. Summary For the information of Council, the outright purchase of the new equipment versus leasing comparison is as follows: Outright Purchase NP6650 NP8580 NP3325 $ 16,422.00 28,470.00 7,275.41 $ 52,167.41 + Service Costs + P.S.T. Lease $ l,207.15/month x 66 month term $ 79,671.90 + Service Costs + P.S.T. 718 Page - 6 - TR-21-90 PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS Note, not included in the above figures is the total cost of the existing lease of the Clerk's Department's NP6650 which is to be transferred to Treasury. The cost of service for all of the Canon photocopiers included in this report, will be at the 1989 established rate of $ .0085 per copy. A lease agreement is proposed for the following reasons: (a) Should it become evident that the photocopier no longer meets the needs of the user, alternate equipment can be negotiated and a new lease agreement entered into, in most cases with no penalty to break the existing lease. (b) Warranty guaranteed for term of lease including replacement for non-serviceability. (c) Technology is changing so rapidly and leasing arrangements allow upgrades to meet changing needs of the Corporation more efficiently. Note, all proposed equipment has been placed in the various areas on a trial basis and in each case, excellent performance was achieved. The Treasurer has reviewed the funding requirements and concurs with the recommendation. Queries with respect to department needs, specifications, etc. should be referred to the various Departments. 719 Page - 7 - TR-21-90 PROPOSED PHOTOCOPIER LEASE - VARIOUS DEPARTMENTS After further review and analysis of the proposals, it was mutually agreed by all involved staff and the Purchasing and Supply Agent that the proposal from O.E. Oshawa Inc., Oshawa, Ontario, for the Canon NP6650, NP8580 and the NP3325 be recommended for acceptance. Respectfully submitted, Recommended for presentation to the Committee, H.B.Sc., {?\ C~j0~ ... ,Lawrence E. Kotseff, ~ Chief Administrative Officer. LAB/hjl Attachments ~20 7 _ SCHEDULE liB II THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW NUMBER 90- Being a By-Law to authorize the entering into a Lease Agreement with O.E. Oshawa Inc. 1. That the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Town of Newcastle, and seal with the Corporate Seal, a Lease Agreement between O.E. Oshawa Inc. and the Corporation dated this day of April, 1990, which agreement is attached hereto and marked Schedule "X". 2. That this By-Law not take effect until approved by the Ontario Municipal Board, pursuant to Section 64 (1) of the Ontario Municlpal Board Act. By-Law read a first and second time this day of April, 1990. day of April, 1990. By-Law read a third time and finally passed this Mayor t24 Clerk